Reference no: EM13976504
1. Working with graphs and tables. On a separate sheet, draw the following graphs:
a. An increase in demand, supply constant.
b. An increase in supply, demand constant
c. A decrease in demand, supply constant.
d. A decrease in supply, demand constant.
e. A decrease in demand equal to a decrease in supply.
2. Do the calculations necessary to solve the following problem.
Price is $10 quantity demanded is 100 units, and quantity supplied is 130 units. For each dollar decline in price, quantity demanded rises by 5 units, and quantity supplied falls by 5 units.
What is the equilibrium price?
3. Applying economic concepts by discussing the solution to the following problem:
Suppose three McDonald’s operate in your town, and each pays its employees $ 6.00 per hour. If McDonald’s started paying $9.00 per hour to its employees, would more, fewer, or the same number of people want to work for McDonald’s, according to the law of supply?
4. Critical Thinking Questions.
a. Why do you think that most economies are mixed economics instead of purely capitalist or purely socialist economies?
b. Thomas Friedman states that “globalization is not just some economic fad, and it is not a passing trend.” He also argues that the “relevant market today is planet Earth. How does a Swedish retailer like IKEA opening a store in Russia reflect the recent trend toward globalization?
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