Economics Homework Two Answers - Student Nine

Mark B Economics Homework #2

1\. Price, Quantity

Correct.

2\. Quantity = 12. P= $18

Correct again!

3\. When the supply of a good or service increases, the price decreases because there is more of the product, and buyers can negotiate a lower price. When the demand for a good increases, the price should go up because there is incentive for a seller to raise his price.

Good.

4\. If a grocery store lowers the price for its ripened fruit, the point where the price intersects the demand moves down and to the right, which is an increase in demand.

Excellent. Note that the supply curve shifted right for this to occur.

5\. a) 600 tickets; $3,000 b)Yes, the tickets will sell out unless you have more than 1000 seats. Yes, you will have to wait in line because demand exceeds supply. I would oppose such a law because it doesn’t go along with the free market.

Correct as to part (a), and your answer to part (b) is particularly good. I may use it as a model answer.

6\. Time isn’t money itself, but you can convert time into money by trading it for your time working.

Good.

7\. Waiting lists develop in those countries because the quantity of demand increases as more people can afford the service. As the prices go down, fewer people want to provide the service, so there are not enough doctors to treat everyone for the medical services.

Superb.

Terrific answers. Perfect, in fact. 70/70. Congratulations.--Andy Schlafly 12:35, 20 September 2009 (EDT)