Reference no: EM13743436

PART I: SHORT RESPONSE

Directions: Please provide detailed and elaborate responses to the following questions.  Your responses should be a minimum of 1 to 2 paragraphs and should include examples from the reading assignments or personal experience, if possible.

1. Explain how the price of a good you buy is affected by changes in the prices of (a) substitute goods and (b) complementary goods.

2. It has just been reported that Happy Smile toothpaste reduces your cavities by 70 percent, while whitening your teeth and freshening your breath.  Explain the report's likely effect on the price and quantity of this toothpaste's sales.

3. Do you agree with this statement: "As price goes up, demand goes down"?  Explain your answer.

4. Why does the demand curve slope downward?

5. Why does the supply curve slope upward? 

6. If you were a seller, why would you want to limit supply-either by keeping out new market entrants or by establishing production quotas for everyone  And why would you hate that if you were a consumer?

7. How could an economic crisis in Southeast Asia cause the price you pay for gasoline to fall?

8. If marijuana were legalized, what do you think would happen to the supply and demand curves and the price?

9. You're moving into a new house one week from today. Checking the local newspaper and the phone book, you ?nd 10 movers. Each one of them gives you a quote at least $1,000 more than you think you should pay. Explain what you will do in terms of demand and supply.

10. During recessions Walmart's low prices attract more customers. Explain why this means that Walmart is selling inferior goods.

11. The American Medical Association announces that eating three apples a day will promote good health. How would this affect the demand for apples and the equilibrium price and the quantity sold?

PART II: JOURNAL ACTIVITY

Directions: Choose a topic from this week's learning that you found intriguing.  Then visit a media website (CNN, MSN, etc.) and choose a current event that pertains to the topic of your interest.

When completing this assignment, you will want to include the following:

1. Brief reaction to the article/work (article should relate to the current course learning)

2. Explain why you feel this article pertains to class

3. Summary of the article/work: Summarize the importance of the topic vs. our class learning

4. Bibliographical entry - Follow APA format for both the current event and case study

Work will be double spaced, two-three pages in length and follow the format listed below:

1. Summary: A brief description of the premise of the article.
2. Background: What was the basis for the article?  What caused the author to write the article?
3. Findings:  What were the results/findings the article made?
4. Reaction to the article: What did you think?

The current event assignment must be typed, double-spaced, with 1-inch margins and 12-point type following APA format.  A title page and reference page are mandatory.