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orchidbee801Lv1
28 Sep 2019
In the early part of the last decade, there was an overproductionof coffee. The price dropped so low that producers' costs werehigher than the market price. The reason this happened was thatmarket prices became high before this, and the supply of coffeeincreased substantially. In the meantime, demand for coffee andeverything else remained the same. Price Level 1.
Coffee prices came down again, at first overshooting the formerequilibrium price, throwing the coffee market into confusion. Inthe meantime, gourmet coffee houses began appearing, which begancharging a premium for coffee in the period of falling prices.Price Level 2.
Gourmet coffee houses tend to open in high-rent areas and cater tohigher income consumers. Because of the change they created fortaste and preferences and the higher income market, the gourmetcoffee houses had a win-win in a period of falling wholesale pricesand increasing retail prices. Price Level 3.
But in the middle of the decade, the party was over, and wholesaleprices started increasing because of some shortages caused byweather and the rising overall market prices again. Where is thenew equilibrium price? Price Level 4.
Explain the changes in the supply and demand curves based on theabove information. Draw a graph showing how the changes affect theprice levels, supply and demand.
Scenario Two
You have been asked to discuss the differences between themicroeconomic definitions of supply and demand and themacroeconomic differences of aggregate supply and demand. Discusswhat determines supply and demand and aggregate supply andaggregate demand. Explain what causes movements along the curve andshifts in the curve for supply and demand and aggregate supply andaggregate demand (make sure that you include price as a variable).Include whether this is an example of the microeconomic definitionof supply and demand or the macroeconomic definition of aggregatesupply and demand. Most importantly, did this cause a shift in thecurves or a movement along the curves? What happened to equilibriumprice, supply, demand, aggregate supply or aggregate demand?Describe your graphs.
After Hurricane Katrina, what happened to the price of fish?
After the development of the microchip, what happened to the priceof computers?
After the government raised tariffs on imported cheese, whathappened to the price of domestic cheese?
Polyester suits have become trendy again. What happens to theirprice?
Internet auction sites are becoming more popular, and people areusing them more and more.
An new health report came out that said red wine lowerscholesterol.
The government raises taxes.
Inflation increases.
Immigration laws are relaxed.
The government increases spending.
Scenario Three
The PPF curve shows the economic choices a country can make aboutproduction given scarce resources, a given technology, and a givenquantity of inputs. Assume you are a developing country, producingfood and clothing at maximum capacity. What could happen whenforeign investors start investing in your country?
Discuss what type of foreign investments would be best for theeconomy
In the early part of the last decade, there was an overproductionof coffee. The price dropped so low that producers' costs werehigher than the market price. The reason this happened was thatmarket prices became high before this, and the supply of coffeeincreased substantially. In the meantime, demand for coffee andeverything else remained the same. Price Level 1.
Coffee prices came down again, at first overshooting the formerequilibrium price, throwing the coffee market into confusion. Inthe meantime, gourmet coffee houses began appearing, which begancharging a premium for coffee in the period of falling prices.Price Level 2.
Gourmet coffee houses tend to open in high-rent areas and cater tohigher income consumers. Because of the change they created fortaste and preferences and the higher income market, the gourmetcoffee houses had a win-win in a period of falling wholesale pricesand increasing retail prices. Price Level 3.
But in the middle of the decade, the party was over, and wholesaleprices started increasing because of some shortages caused byweather and the rising overall market prices again. Where is thenew equilibrium price? Price Level 4.
Explain the changes in the supply and demand curves based on theabove information. Draw a graph showing how the changes affect theprice levels, supply and demand.
Scenario Two
You have been asked to discuss the differences between themicroeconomic definitions of supply and demand and themacroeconomic differences of aggregate supply and demand. Discusswhat determines supply and demand and aggregate supply andaggregate demand. Explain what causes movements along the curve andshifts in the curve for supply and demand and aggregate supply andaggregate demand (make sure that you include price as a variable).Include whether this is an example of the microeconomic definitionof supply and demand or the macroeconomic definition of aggregatesupply and demand. Most importantly, did this cause a shift in thecurves or a movement along the curves? What happened to equilibriumprice, supply, demand, aggregate supply or aggregate demand?Describe your graphs.
After Hurricane Katrina, what happened to the price of fish?
After the development of the microchip, what happened to the priceof computers?
After the government raised tariffs on imported cheese, whathappened to the price of domestic cheese?
Polyester suits have become trendy again. What happens to theirprice?
Internet auction sites are becoming more popular, and people areusing them more and more.
An new health report came out that said red wine lowerscholesterol.
The government raises taxes.
Inflation increases.
Immigration laws are relaxed.
The government increases spending.
Scenario Three
The PPF curve shows the economic choices a country can make aboutproduction given scarce resources, a given technology, and a givenquantity of inputs. Assume you are a developing country, producingfood and clothing at maximum capacity. What could happen whenforeign investors start investing in your country?
Discuss what type of foreign investments would be best for theeconomy
Coffee prices came down again, at first overshooting the formerequilibrium price, throwing the coffee market into confusion. Inthe meantime, gourmet coffee houses began appearing, which begancharging a premium for coffee in the period of falling prices.Price Level 2.
Gourmet coffee houses tend to open in high-rent areas and cater tohigher income consumers. Because of the change they created fortaste and preferences and the higher income market, the gourmetcoffee houses had a win-win in a period of falling wholesale pricesand increasing retail prices. Price Level 3.
But in the middle of the decade, the party was over, and wholesaleprices started increasing because of some shortages caused byweather and the rising overall market prices again. Where is thenew equilibrium price? Price Level 4.
Explain the changes in the supply and demand curves based on theabove information. Draw a graph showing how the changes affect theprice levels, supply and demand.
Scenario Two
You have been asked to discuss the differences between themicroeconomic definitions of supply and demand and themacroeconomic differences of aggregate supply and demand. Discusswhat determines supply and demand and aggregate supply andaggregate demand. Explain what causes movements along the curve andshifts in the curve for supply and demand and aggregate supply andaggregate demand (make sure that you include price as a variable).Include whether this is an example of the microeconomic definitionof supply and demand or the macroeconomic definition of aggregatesupply and demand. Most importantly, did this cause a shift in thecurves or a movement along the curves? What happened to equilibriumprice, supply, demand, aggregate supply or aggregate demand?Describe your graphs.
After Hurricane Katrina, what happened to the price of fish?
After the development of the microchip, what happened to the priceof computers?
After the government raised tariffs on imported cheese, whathappened to the price of domestic cheese?
Polyester suits have become trendy again. What happens to theirprice?
Internet auction sites are becoming more popular, and people areusing them more and more.
An new health report came out that said red wine lowerscholesterol.
The government raises taxes.
Inflation increases.
Immigration laws are relaxed.
The government increases spending.
Scenario Three
The PPF curve shows the economic choices a country can make aboutproduction given scarce resources, a given technology, and a givenquantity of inputs. Assume you are a developing country, producingfood and clothing at maximum capacity. What could happen whenforeign investors start investing in your country?
Discuss what type of foreign investments would be best for theeconomy
Joshua StredderLv10
28 Sep 2019
