Reference no: EM133338410

Questions

1. How would you define a "market" in the economics sense of the word? Give an example of a market for a good or services that does not rely on a physical store or location.

2. How has technology affected the way markets are formed (think in terms of transaction costs) How might this affect prices?

3. Define the Law of Demand and the Law of Supply. Provide an example of each from your own life that illustrates these laws at work.

4. How can a price ceiling imposed on a particular product create a shortage? Provide a specific example. Think about whether this price ceiling would have to be above or below the market equilibrium price.

5. List each of the factors that can shift a demand curve. Remember, we are talking about a shift of the demand curve, not a movement along the demand curve. In other words, price is not one of the factors.

6. Give a real-life example of the way each of these factors has affected the demand curve for a product ( use different products for each of the examples).