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This document provides instructions for a practice economics assignment. Students are asked to answer questions about concepts of demand, supply, and market equilibrium. They are to define key terms, draw supply and demand diagrams to illustrate different scenarios, and analyze how shocks to various markets would impact equilibrium price and quantity. Specifically, students are to show graphically and explain in one sentence how equilibrium would change if demand or supply increased or decreased in markets for goods like rice, soft drinks, and bananas.
This document provides instructions for a practice economics assignment. Students are asked to answer questions about concepts of demand, supply, and market equilibrium. They are to define key terms, draw supply and demand diagrams to illustrate different scenarios, and analyze how shocks to various markets would impact equilibrium price and quantity. Specifically, students are to show graphically and explain in one sentence how equilibrium would change if demand or supply increased or decreased in markets for goods like rice, soft drinks, and bananas.
This document provides instructions for a practice economics assignment. Students are asked to answer questions about concepts of demand, supply, and market equilibrium. They are to define key terms, draw supply and demand diagrams to illustrate different scenarios, and analyze how shocks to various markets would impact equilibrium price and quantity. Specifically, students are to show graphically and explain in one sentence how equilibrium would change if demand or supply increased or decreased in markets for goods like rice, soft drinks, and bananas.
Instructions: 1. Read Chapter 3 of our textbook. 2. Answer on a yellow pad. 3. Work individually.
I. Concepts (40 points) 1. (10 points) DEMAND (a) (2 points) Using demand curve diagrams, show the difference between movements along the demand curve and shifts in demand. (b) (2 points) In two sentences, explain the difference between changes in quantity demanded and changes in demand. (c) (2 points) What factors cause quantity demanded to change? (d) (2 points) What factors cause demand to change? (e) (2 points) Create a hypothetical market demand schedule (table) for brownies and plot the demand curve. Label your axes and curves.
Demand schedule Price of brownies Quantity Demanded A B C D
2. (10 points) SUPPLY (a) (2 points) Using supply curve diagrams, show the difference between movements along the supply curve and shifts in supply. (b) (2 points) In two sentences, explain the difference between changes in quantity supplied and changes in supply. (c)(2 points) What factors cause quantity supplied to change? (d)(2 points) What factors cause supply to change? (e)(2 points) Create a hypothetical market supply schedule (table) for brownies and plot the supply curve. Label your axes and curves.
Supply schedule Price of brownies Quantity Supplied A B C D
3. (5 points) MARKET EQUILIBRIUM Combine your demand and supply curves for brownies and show the equilibrium quantity and price.
4. (5 points) In two sentences, explain why demand curves are downward sloping, and supply curves are upward sloping.
5. (10 points) Suppose we have a market for good X. Graphically show (using supply and demand diagrams) AND describe in one sentence the effects of the following events on the equilibrium price and equilibrium quantity of X. (a) (2 points) Demand increases but supply is steady. (b) (2 points) Demand falls but supply is steady. (c) (2 points) Supply increases but demand is steady. (d) (2 points) Supply falls but demand is steady. (e) (2 points) Demand increases and supply falls.
II. Application (20 points) 6. (20 points) For each of the following scenarios, use a supply and demand diagram to illustrate the effect of the given shock on the equilibrium price and quantity in the specified competitive market. For each item, explain why the effect occurred in one sentence.
(a) (5 points) El Nio hits the Philippines. Show the effect in the domestic rice market.
(b) (5 points) The government introduces a tax on each bottle of soft drinks sold. The tax is borne by beverage companies. Show the effect in the soft drinks market.
(c) (5 points) The Philippines and Ecuador are among the top banana exporters in the world. Banana workers in Ecuador decide to go on strike. Show the effect on the global market for Ecuadorian bananas.
(d) (5 points) Show the effect of the situation described in (c) on the global market for Philippine bananas.
Bonus: (2 points) What is being held equal when changes in quantity demanded and quantity supplied are being analyzed?
يبد, ةيِملاعلا سا سا هيج ةسردم Jss International School, Dubai. First Term End Exaination-Aug 2017 Economics Grade: X Max Marks: 80 DATE: 27/08/17 (Two hours)