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Assignment
Directons: Answer each of the questions below.
1. From the newspaper came this story: "Record Number of Baseball Fans Paid Higher Prices for Tickets." Explain how and why this situation could occur. Provide one example of a time when you paid a higher price than normal and explain why you did so. Don't forget that this example can be a product or a service.
2. Identify a product that is crucial to our economic system. Explain the supply and demand curve for that product.
3. What is the Law of Diminishing Demand? Provide one example.
4. Give an example of a product with an elastic demand and one with inelastic demand. Explain each product and why you believe it is elastic or inelastic.
5. Explain equilibrium. Be specific and provide at least one example.
6. Conduct internet research to locate an illustration of a supply and demand curve. Provide the link and a summary of the product or service in the illustration and why this is a good example of the supply and demand curve. Don't forget to cite your source (provide the link).
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Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine?
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The market for DVD’s has a supply and demand curve P’= 2Qs and P=42-Qd a. How many units will be traded at a price of $35? At $14? Which participants will be dissatisfied at these prices?
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