Economics Homework Two Answers - Student Twenty-Five

1. The supply of a good, and the demand for that good determine bot the quantity and the price at which the good is sold.

Correct.

2. 30-Q = 6+Q So P = 30-Q P = 6+Q assuming P = P When solving for the equation Q = 12 P = 18 So Price is $18 at a quantity of 12.

Correct.

3. When the supply of a good or service increases such as an increase in the number of oil wells, the market price of oil goes down because the slope of the demand curve. When the demand for gasoline goes up the price increases because of greater demand.

OK, but it's not directly due to the slope of the demand curve. (Minus 1).

4. Following the downward slope of the demand curve, as quanity increases price decreases. This forces the store to lower the price of the grapes in order to sell them before they go bad and gives the consumer a chance to get a lower price.

No, that's a misuse of the demand curve similar to the problem in your answer to question 3. (Minus 2).

5. They made 600 seats at $5 each making $3000 per game. If the law was passed to force the seats to sell for $2 this would cause higher demand and cause possible lines. This would not be fair in my opinion because it would force the stadium to sell at a loss.

Correct.

6. Time is money because when we work, we are exchanging our time for money.

True, but incomplete. The phrase "time is money" is directed more at the effect of wasting time. (Minus 1).

7. When the government sets limits or fixed prices that causes shortages and lines because there is less supply when the prices are artificially lowered by government control. Fixing the prices prevents supply from rising to satisfy demand. Therefore the demand is greater than the supply and patients have to wait.

Good.

67/70. Could benefit from reading the lecture more closely.--Andy Schlafly 14:45, 20 September 2009 (EDT)