Class Work
Class Work
1. Analyze the three situations using demand and supply curves: 1) To protect the cod fishery off the northeast coast of the U.S., the federal government may limit the amount of fish that each boat can catch in the fishery. The result of this public policy is to......
2) When the current price is above the market-clearing level we would expect......
3) Due to the recent increase in the price of natural gas, the quantity of coal demanded by electric power generation plants has increased. Based on this information, coal and natural gas are.....
2. The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. If we expect the price of jelly to decline by 15%, what is the expected change in the quantity demanded for peanut butter?
3. Historically, investors have considered gold commodities to be a good investment to preserve wealth in times of inflation. If investors are no longer worried about inflation and gold demand decreases, what do you expect will happen to gold prices? How would your answer change if you learn that a there is a recent gold mine discovery?
4. Suppose the demand curve for a product is given by:
Q= 10-2P+Ps, where P is the price of the product and Ps is price of the substitute good. The price of the substitute good is 2. Suppose P = 1, what is the price elasticity of demand? What is the cross price elasticity of demand? Suppose P increases to 2, then what is the price elasticity of demand and cross price
1. Analyze the three situations using demand and supply curves: 1) To protect the cod fishery off the northeast coast of the U.S., the federal government may limit the amount of fish that each boat can catch in the fishery. The result of this public policy is to......
2) When the current price is above the market-clearing level we would expect......
3) Due to the recent increase in the price of natural gas, the quantity of coal demanded by electric power generation plants has increased. Based on this information, coal and natural gas are.....
2. The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. If we expect the price of jelly to decline by 15%, what is the expected change in the quantity demanded for peanut butter?
3. Historically, investors have considered gold commodities to be a good investment to preserve wealth in times of inflation. If investors are no longer worried about inflation and gold demand decreases, what do you expect will happen to gold prices? How would your answer change if you learn that a there is a recent gold mine discovery?
4. Suppose the demand curve for a product is given by:
Q= 10-2P+Ps, where P is the price of the product and Ps is price of the substitute good. The price of the substitute good is 2. Suppose P = 1, what is the price elasticity of demand? What is the cross price elasticity of demand? Suppose P increases to 2, then what is the price elasticity of demand and cross price