Economics Homework Two Answers - Student Fifteen

IsaacZ

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

Correct.

2\. Q=12, P=18.

Correct again, but next time place the units on the price figure: dollars in this case.

3\. when the supply of oil goes up the prices will decrease since there is more oil available and lowering prices will increase demand. When there is more demand for gas the price will increase because the people selling the gas know that there are more people that want to buy gas and so the raise the price so that they make more money.

Excellent. Note: "people who," not "people that."

4\. Grocery stores lower the price a fruit in which they have a large supply in because they do not want the fruit to spoil before people can buy it. Most people do not want to buy a lot of grapes as they are somewhat expensive, but when there is an oversupply of grapes and the price is lowered, more people will want to buy more grapes.

Good.

5\. A.600 seats, $3000. B If that law were enforced then people would stand in line for obstructed view seats because of the cheap price to see a good baseball game. I would like this law as it gives people the opportunity to see a game at a cheap price.

Correct on part (A). Part (B) is a view different from most of the class, but that's OK!

6\. "Time is money" this saying means that whatever time we spend doing something other than making money we waste the opportunity to make more money. The more time we spend working increases our revenue.

Good.

7\. Waiting lists develop because the demand of the item that people want is greater than the supply of the item. This is because the government put a price on the item which causes the people who supply to not be able to buy enough of it.

Correct about the waiting lists, but your answer confused supply and demand. Supply consists of the sellers, not the buyers. By fixing a price below market value, the government is causing a reduction in supply by sellers. Doctors, hospitals, clinics, etc., won't stay open as much if there is a price ceiling that is below market value. For example, the clinic will be closed on weekends and holidays rather than stay open for a pittance. (Minus 1).

69/70. Very well done!--Andy Schlafly 13:33, 20 September 2009 (EDT)