UNC-Chapel Hill ECON 101 - Problem Set 1 (2 pages)

Previewing page 1 of 2 page document
View Full Document

Problem Set 1

Previewing page 1 of actual document.

View Full Document
View Full Document

Problem Set 1

1958 views

Pages:
2
School:
University of North Carolina at Chapel Hill
Course:
Econ 101 - Introduction to Economics
Introduction to Economics Documents
• 3 pages

• 2 pages

• 2 pages

• 2 pages

• 3 pages

• 3 pages

• 3 pages

• 6 pages

• 8 pages

• 10 pages

• 6 pages

• 7 pages

• 6 pages

• 3 pages

• 9 pages

• 9 pages

• 3 pages

• 6 pages

• 9 pages

• 7 pages

• 9 pages

• 7 pages

• 5 pages

• 8 pages

• 3 pages

• 4 pages

Unformatted text preview:

Washburn Phillip Washburn Economics 101 Problem Set 1 Part A Pago Pago Boomerage Supply and Demand 11 10 9 Male Demand Price 8 7 Quantity Supplied 6 5 4 3 2 5 10 15 20 25 30 Quantity 1 2 The Demand and supply curves have opposite slopes because as the price decreases per unit of boomerang the supplier will not want to supply as many due to a decrease in profits However when the price does go down the consumer the males of Pago Pago will want to buy as many as they can at the low price available 3 a If income goes down then the demand curve will move towards the lef b The supply curve will move to the right c The demand curve will move to the right d The demand for boomerangs will increase moving the curve to the right and the supply will move to the right e The demand for boomerangs will move to the right and the supply will move to the lef f The supply curve will move to the lef to account for the increased cost of production g The supply curve will move to the right as the cost of production moves down h The supply curve will move to the lef to account for the added cost of the company Part B 1 The equilibrium price and demand for this graph would be a price of 7 ogaps with the quantity at 20 units 2 If the maximum price is set at 6 ogaps then the quantity demanded would be 22 boomerangs but only 17 boomerangs will be supplied 17 boomerangs will be bought and sold because the demand is higher than the supply and only 17 will be supplied at the given price The resulting situation would be the citizens of Pago Pago competing to purchase the shortage of boomerangs being supplied In this market a black market of boomerangs may arise from the increased demand and decreased supply resulting in higher prices for a boomerang than are allowed by the legislation Washburn 3 With addition of the female demand the new equilibrium would be found at a price of 8 ogaps with a supply of 23 units I do not think that the boys will welcome the female players as that is the case in

View Full Document

Unlocking...