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Supply and Demand - Assessment
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Answer the following questions. 1. Give examples of markets in which buyers and sellers meet face-to-face and other markets in which buyers and sellers never meet. 2. Explain why there is usually a shortage of batteries in areas where forecasters predict a hurricane, and why apple bins and grocery stores are empty when disease has destroyed half of the apple crop. 3. Explain why there is often a late season surplus of tickets available for the home contests of a basketball team that loses most of its games. 4. Predict how consumers would react if the price of pencils rose to $10 each (and explain the prediction.) Predict how they would react if the price fell to $.01 each (and explain the prediction.) Explain how producers would react in each situation. 5. Explain how a decrease in the price of VCRs can cause a decrease in the price of popcorn at movie theaters. 6. Predict the change in demand for a particular brand of jeans when an extensive ad campaign for the brand targets teenagers, their allowances double, the price of corduroy pants skyrockets, or jeans become a popular item among adults. 7. Predict the changes in supply and market price for domestic cars when the cost of labor increases, more robotics are used to produce cars, the price of domestic utility vehicle rises, or when the number of imported vans increases. 8. Describe what is likely to happen if the government imposed a binding price ceiling on gasoline, and a biding price floor on milk. Try the following interactive tutorials: |
