Consider the market for minivans. For each of the events listed here, identify the effect on the equilibrium price and equilibrium quantity of minivans (note: the answer should be increase, decrease, stay the same, or indeterminate.).
business
Description
It is important to send your answers
to my email (m.rosan@aum.edu.jo)
before 5:00PM Friday 10th of April (for every 15 minutes you are
late, I will subtract 2 points). Make
sure to write your student number too.
AUM:
500101: Microeconomics
Assessment
1: 20%
Name:
Student’s
Number:
Section 1 is M/W
1. Consider the market for minivans. For each of
the events listed here, identify the effect on the equilibrium price and
equilibrium quantity of minivans (note: the answer
should be increase, decrease, stay the same, or indeterminate.).
Fill up the following answer sheet for Question 1: (note: the answer should be increase, decrease,
stay the same, or indeterminate.).
|
|
equilibrium
price |
equilibrium
quantity |
|
a.
People decide to have more
children. . |
|
|
|
b. A strike by steelworkers raises steel
prices. |
|
|
|
c. Engineers develop new automated machinery
for the production of minivans. |
|
|
|
d. The price of station wagons rises. |
|
|
|
a.
A stock-market crash lowers people’s
wealth |
|
|
2. The
market for pizza has the following demand and supply schedules:
|
PRICE
in $ |
QUANTITY
DEMANDED |
QUANTITY
SUPPLIED |
|
4 |
135 |
26 |
|
5 |
104 |
53 |
|
6 |
81 |
81 |
|
7 |
68 |
98 |
|
8 |
53 |
110 |
|
9 |
39 |
121 |
Question 2: Fill up the following answer sheet
|
a.
What is the equilibrium price in
this market? |
|
|
b.
What is the equilibrium quantity
in this market? |
|
|
c.
At price of $4 do you have
shortage or surplus? |
|
|
d.
At price of $8 do you have
shortage or surplus? |
|
3. Now suppose that the hot weather and the food and drug
administration shut down many ice cream shops.
These two events occur at the same time. Analyze the effect of this
combination of events on (note: increase, decrease, stay the same, or
indeterminate.)
Fill up the following answer sheet
Question 3: (note:
the answer should be increase, decrease, stay the same, or indeterminate.).
|
a.
What will happen to the
equilibrium price in this market? |
|
|
b. What
will happen to the equilibrium quantity in this market? |
|
