ECON101 Lecture Notes - Lecture 9: Demand Curve, Dont

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crimsonhound259

24 Sep 2018

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University of Alberta

Department

Economics

Course

ECON101

Professor

Gainer,Alexander

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ECON101 Lecture Notes - Lecture 8: Lead, Market Distortion, Laffer Curve

ECON101 Lecture Notes - Lecture 9: Demand Curve, Dont

ECON101 Lecture Notes - Lecture 10: Collegehumor, Market Failure, Economic Surplus

Document Summary

Review top hat question #1: say the following two events occur at the same time: the. Chicago cubs win the mlb championship, the team management increases the salaries of all the chicago cubs players. Holding everything else constant, we would expect the price of the next season cubs" tickets to ____ and the quantity of tickets to _____. Answer: with the cubs winning, the demand shifts. Salaries increase, it means it increases the supply (salaries are input prices). The demand shift will be to the right, the supply shift will be to the left. Move the supply and demand curves according to the directions of their shifts, you"ll see that the price has increased . There is not enough information to plot the new quantity demanded. Review top hat question #2: assume that marijuana and alcohol are substitutes. An increase in the costs of production of alcohol would ____ the price of alcohol and ____ price of marijuana.

Related Questions

QUESTION 25

What will happen in a market where a binding price floor is removed?

	a.	There will be upward pressure on the prices.
	b.	The price or quantity of the product sold in the legal market will not change.
	c.	There will be downward pressure on the prices.
	d.	The products sold will become scarcer.
	e.	There will be increased pressure to buy and sell the good on the black market.

1.05000 points

QUESTION 26

The local bakery calculates the price elasticity of demand for its cinnamon rolls to be â1.25. This tells them that demand is ________ and price is ________ to the buyer.

	a.	perfectly inelastic; everything
	b.	perfectly elastic; meaningless
	c.	elastic; more important than the quantity
	d.	inelastic; less important than the quantity
	e.	unitary elastic; on the same level as quantity

1.05000 points

QUESTION 27

Marginal product is the change in:

	a.	total output minus the change in input.
	b.	total output divided by the change in input.
	c.	input divided by the change in total output.
	d.	total output plus the change in input.
	e.	total output times the change in input.

1.05000 points

QUESTION 28

The government imposes a tax on each plastic bag sold such that the producer of the plastic bags must pay the tax to the government. In the market for plastic bags, the:

	a.	supply curve shifts to the left.
	b.	supply curve shifts to the right.
	c.	demand curve shifts to the right.
	d.	demand curve shifts to the left.
	e.	the supply curve and the demand curve shift to the left.

1.05000 points

QUESTION 29

Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see:

	a.	the demand curve for Pepsi shift to the right.
	b.	the demand curve for Coke shift to the right.
	c.	no change in the demand for Coke.
	d.	the demand curve for Coke shift to the left.
	e.	the demand curve for Pepsi shift to the left.

1.05000 points

QUESTION 30

The government has identified a situation where the production of a good is creating a negative externality. The government should enact legislation to require firms to internalize the externality:

	a.	as long as there are positive health benefits associated with this policy.
	b.	as long as it will not increase the price of the good being produced.
	c.	in all such cases.
	d.	if the benefits of doing so outweigh the costs.
	e.	as long as it will not create unemployment in this industry.

1.05000 points

QUESTION 31

The out-of-pocket expenses incurred in producing a good are also known as:

	a.	wages and prices.
	b.	fiduciary costs.
	c.	explicit costs.
	d.	capital costs.
	e.	implicit costs.

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ECON101 Lecture Notes - Lecture 9: Demand Curve, Dont

ECON101 Lecture Notes - Lecture 8: Lead, Market Distortion, Laffer Curve

ECON101 Lecture Notes - Lecture 9: Demand Curve, Dont

ECON101 Lecture Notes - Lecture 10: Collegehumor, Market Failure, Economic Surplus

Document Summary

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