ECON 105 Lecture 1: CHP3

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ceriseshark549

22 Apr 2015

School

Simon Fraser University

Department

Economics

Course

ECON 105

Professor

Stephen Choi

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ECON 105 Full Course Notes

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Reading: chapter 3 macroeconomics/ragan & lipsey - 14th edition. The total amount that consumers ____________________ to purchase at certain prices in some ____________________ is called the quantity demanded of a. _________________, as opposed to a stock. a product. Quantity bought (or exchanged) refers to _____________ purchases. A flow variable is measured over an _____________ of time. Therefore a flow would be measured per unit of time (say a year). On the other hand, a stock variable is measured at one _____________ time, and represents a quantity existing at that point in time which may have accumulated in the past. A basic hypothesis is that ceteris paribus the price of a product and the quantity demanded are ____________________ related. A: to restrict considerations of other influential factors to qd, except its own price. A: additional benefits gained as a result of consuming the next unit of a good.

Related Questions

1. Assume the equilibrium price of product Z is $10. A decrease in the current price from $14 to $12 will cause an increase in the quantity:

A. Supplied, a decrease in the quantity demanded, and a decrease in the market surplus.

B. Supplied, a decrease in the quantity demanded, and a decrease in the market shortage.

C. Demanded, a decrease in the quantity supplied, and a decrease in the market surplus.

D. Demanded, a decrease in the quantity supplied, and the market shortage is eliminated.

E. Demanded, a decrease in the quantity supplied, and a decrease in the market shortage.

2. The Wall Street Journal (newspaper) of August 24, 2016, reported that the Chinese government recently increased the demand for wheat. When an economist says the demand for wheat has increased, she means that:

		A. The demand curve for wheat has shifted to the left.
		B. The price of wheat has increased and, as a result, consumers are buying a larger quantity of wheat.
		C. Consumers are now willing and able to purchase more wheat at each possible price.
		D. The price of wheat has decreased and, as a result, consumers are buying a larger quantity of wheat.
		E. Consumers are now willing and able to make more wheat available at each possible price.

emeraldseal473

Taxation Question (SHOW ALL WORK)

Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds provided.

What is the equilibrium price? (Hint: At the equilibrium, quantity demanded and quantity supplied are equal, Qd = Qs.)

What is the equilibrium quantity supplied and demanded?

Calculate the consumer surplus at the equilibrium price.

Calculate the producer surplus at the equilibrium price.

Calculate the total surplus at the equilibrium price.

Now suppose that the government imposes a tax of $8 per each pound sold, paid by the producers. In this case, what are the price and the consumer surplus?

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ECON 105 Lecture 1: CHP3

ECON 105 Full Course Notes

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ECON 105 Lecture Notes - Lecture 2: Economic Equilibrium, Latte, Demand Curve

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