User Account

All Pages

Draw a supply and demand curve showing the market

Assignment Help Microeconomics
Reference no: EM132512241

1. Consider the market for higher education in the state of Illinois where private universities compete for students with public universities.

a. Draw a supply and demand curve showing the market for public universities. Label your graphs with an S for the supply curve, a D for the demand curve, P on the vertical axis and Q on the horizontal axis.

b. On your graph, show the effect of the state of Illinois reducing state funding that is provided directly to the public universities. Does it cause the supply curve or the demand curve to shift? Explain why and show which way the appropriate curve would shift.

c. As a result of the shift, what happens to the price and quantity of public universities?

d. Now draw a separate graph showing the market for private universities. Label your graphs with an S for the supply curve, a D for the demand curve, P on the vertical axis and Q on the horizontal axis.

e. On your second graph showing the market for private universities, show the effect of the state of Illinois reducing state funding that is provided directly to the public universities. Does it cause the supply curve or the demand curve to shift? Explain why and show which way the appropriate curve would shift.

f. As a result of the shift, what happens to the price and quantity of private universities?

2. Consider a macroeconomy in equilibrium.

a. Draw this economy using Aggregate Supply (short run and long run) curves and an Aggregate Demand curve in equilibrium. Be sure to label each graph and show the appropriate titles on your horizontal axis and vertical axis.

b. On your graph, show the impact of the financial crisis of 2007-2008. What curve(s) would shift? Which way? Why?

c. As a result of the shift(s), what happens to output and prices in the economy? Why?

d. What should be the appropriate action taken by the government as a result? Explain.

3. Consider a bank that has lent all its excess reserves. Now suppose a customer withdraws a substantial amount from his/her checking account and no new money came into the bank.

a. What problem, if any, does this create for the bank?

b. What are at least three options the bank has to resolve this problem?

c. Which option (if you were the bank) would you choose and why? Explain.

Reference no: EM132512241

Questions Cloud

What is a better option or capitalizing or expensing : What are the recognition criteria it would meet for it to be recognized as an intangible asset and what would be the expenditures that IFRS would recognize
Would you predict the united states or ireland to have : Discuss what evidence/theory from Chapter 11 you are using to support this prediction.
Determine level of working capital and net working capital : Calculate the company's net working capital and current ratio under each of the three strategies. Determine the level of working capital, net working capital
What source funds the medicare program : What source funds the Medicare program? What is the effect of Medicare reimbursement rates on private physicians' as compared to hospitals?
Draw a supply and demand curve showing the market : 1. Consider the market for higher education in the state of Illinois where private universities compete for students with public universities.
Describe the elements of the police subculture : What are Klockars's descriptions of police authority, power, persuasion, and force? Describe the elements of the police subculture.
Do blacks receive discriminatory police services : Do blacks receive discriminatory police services? What is the evidence? Describe Barker and Carter's typology of lies.
Prepare the entries to record first annual interest accrual : Prepare the entries to record the first annual interest accrual and the payment assuming that the company uses effective-interest amortization.
Ethical dilema : You and your partner have been working together for more than five years. He has seen you through the serious illness of your young child

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd