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1. The summer beach house rental season is June through early September; what will happen to the price and quantity of beach house rentals in New Jersey during the summer season compared to the off-season? Is there a movement or a shift, why? Graph and explain the relationship.
2. Show graphically and explain in writing how the following demand and supply curves are likely to shift in response to the indicated changes:
a) The price of large screen LCD and plasma TVs are going down. Why?
b) The effect on the demand curve for hybrid cars (run on electric and gas and get much greater gas mileage) vs. regular cars (run only on gas) when the price of gas doubles. You need two graphs.
First, graph the supply and demand curves then show the changes in a and b above regarding quantity and price.
3. The price of houses has been going down for a few years. Graphically show and then explain what has occurred and why (reason for shift)? You can make up a reason as well as long as you support it.
Some helpful hints; you must know the reasons (determinants) for the shifts in supply or demand (and list them) in your graphs. Only one curve moves except where price of other goods are concerned (substitute or complimentary) and there is a movement on the other curve.
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