Demand curve graphical representation for Muffin
economics
Description
ECON 100
Assignment #1 - Written
Due: Beginning of the lecture on October 12.
Total: 50 marks, 5% of final grade
1. “Demand for a Muffin” Experiment (5)
Precisely graph the demand curve for muffin as discovered in our class
experiment.
2. “Supply of a Coke” Experiment (5)
Precisely graph the supply curve for a Coke as discovered in our class
experiment.
3. Text Question: Chapter 2, Question 7, p. 54 (12)
4. 4-Step Approach
Use the 4-Step Approach and supply and demand curves to determine the
market price and quantity for the particular goods in each of the following
independent cases. (20)
a. New genetic engineering technology enables ranchers to raise
healthier, heavier cattle significantly reducing costs. Market: beef (5)
b. In addition to developing new genetic engineering technology, we have
been mistaken in the past. Highly credible new research results report that
abundant consumption of fatty red meats actually prolongs average life
expectancy. Market: beef. (5)
c. The price of electric cars decreases. At the same time, a large oil
reserve of drillable (and immediately usable) oil is discovered in
Saskatchewan. Market: oil. (5)
d. In the summer of 1996, many people watched the Atlanta Summer
Olympics on NBC instead of going to the movies. At the same time,
thinking that summertime is the peak season for movies, Hollywood
released a record number of movies. Market: movie tickets. (5)
5. During the real estate boom of the mid-1990’s, the price of new and existing
homes rose year after year, yet people purchased more homes year after year. Is
this outcome best explained as an exception to the law of demand? Explain. (8)
