Terms
What is a place where buyers and sellers meet to exchange goods and services
Market
Find PED and state elasticity
% change in Price=5.2
% Change in Quantity=8.1
1.56
Elastic
Using a demand and supply diagram, draw how an increase in the price of hot dogs will impact hot dog buns.
S/D
Demand decreases
Draw on board
For explanations--must explain what happens and why
EXPLAIN how a major earthquake in Wisconsin will affect the Price and Quantity of cheese
a earthquake is a supply shock/natural disaster. This will cause a decrease in supply. Producers will produce less and their will be a shortage. As a result, they will raise prices. Quantity will go down and price will go up
A sum of money given by a government to a business/firm
Subsidy
A good or service that people will buy less of when income rises
Inferior Good
Find PES based on Data and state elasticity
Percentage change in Quantity 11.2%
2018 Price $7, 2019 Price 7.89
.88
Inelastic
Fully label all components
Using a demand and supply diagram, draw how a subsidy on cotton producers in the United States, affects the cotton market
Subsidy diagram
draw
For explanations--must explain what happens to all components and why.
EXPLAIN how decreased financial regulation under President George W. Bush, will influence the producer revenue
Financial regulation leads to deadweight loss for producers and consumers. Financial regulation will increase the social surplus.
interconnected network of organizations, people, activities, information, and resources that transform raw materials into finished products and deliver them to the end customer
Supply Chain
Where MC=MB
Allocative Efficiency
Based on data, calculate the PED for United States Wheat in 2019 and state elasticity
Price
2018-1.5
2019-1.62
Quantity
2018-120 Million
2019-124 Million
.42
Inelastic
Fully label all components
Using a demand and supply diagram, draw how a price floor on Minimum wage affects the United States labor market.
PF
Draw
For explanations--must explain what happens to all components and why.
Explain the impact of New York imposing price ceilings on apartments for apartment owners
Apartment owners will have to charger a lower maximum amount then the equilibrium price. This will mean some will use their property for alternative uses. As a result there will be a shortage
Tax on demerit goods
Pigouvian Tax
% based tax on goods
Ad-Valorem Tax
Find YED and state type of good
Good X
Income
2018-100,000
2019-90,000
Quantity
2018-123
2019-134
-.89
Inferior Good
Fully Label all components
Using a demand and supply diagram, draw how a price ceiling on Vaccine testing in China, affects the price and availability of medicine
PC
Draw
For explanations--must explain what happens to all components and why
Explain how President Biden subsidizing Green energy will affect the price of green energy for consumers and producers
The price of green energy will decrease as a result of the subsidy for consumers--as the price they are charged is counterbalanced by subsidy amount. Producers price will be higher (which includes how much they charge and subsidy amount)
Using a demand and supply diagram, draw the impact of expectations that the price of medicine will rise in 6 months will impact pharmaceutical producers.
decrease in supply
S/D Graph
See board
Loss of total economic surplus
Deadweight loss/welfare loss
Assume your income goes from $90,000 to $150,000. Your YED of BMW's is 5.9. Calculate the % change in quantity demand.
393.33%
Fully label all components
Using a demand and supply diagram, draw how a tax on bullets in California affects the bullet market
Tax graph
For explanations--must explain what happens to all components and why.
Explain how Texas decreasing property taxes will impact government revenue
If Texas decreases taxes, there will be a overall welfare gain. However, the government will loose the revenue they gained from taxes. Revenue will decrease.
Using a demand and supply diagram, draw how the increased fad for furries will impact the USA
Increase in demand
S/D
See board