Draw a graph that shows the apartment market in equilibrium with
a binding rent ceiling. Label...
Draw a graph that shows the apartment market in equilibrium with
a binding rent ceiling. Label equilibrium price, equilibrium
quantity, rent ceiling, consumer surplus, producer surplus, and
deadweight loss on the graph.
1. Graph the market for apartment units that has a binding
price ceiling (rent control) and a consumer subsidy.
2. Graph the market for tobacco that has both a consumer
tax, and a producer subsidy.
For each, always indicate any surplus or shortage, and
under- or over-allocation.
(a) Draw the market for SUVs in equilibrium. Label your graph
neatly and correctly.
(b) Now show what happens in the market when the price of gas
falls dramatically and the technology used to manufacture SUVs
improves, if the drop in gas has a much bigger impact on the market
than the technology improvement.
( c) What will happen to the new equilibrium price and quantity
of SUVs?
Draw three different supply curves on a graph:
Make S1 highly elastic...
(a) Draw the market for SUVs in equilibrium. Label your graph
neatly and correctly.
(b) Now show what happens in the
market when the price of gas falls dramatically and the technology
used to manufacture SUVs improves, if the drop in gas has a much
bigger impact on the market than the technology improvement.
( c) What will happen to the new
equilibrium price and quantity of SUVs?
Draw a supply and a demand curve and label the market
equilibrium on the axes with P1 and Q1.
Illustrate the effect of an increase in demand on price and
quantity. Label the new equilibrium values on the axes with P2 and
Q2.
In your own words and in detail explain the market adjustment
leading to the new equilibrium.
Show the relevant elements of your explanation in the graph
Draw a supply and a demand curve and label the market
equilibrium on the axes with P1 and Q1.
In the same graph, show the effects of an increase in supply and
an increase in demand on price and quantity. Label the new
equilibrium values on the axes with P2 and Q2.
Add one more curve – either for supply or demand demand – to
your graph and show that the effect of a simultaneous increase in
supply and demand...
3. Draw and label the bond market graph covered in chapter 5.
Then, using the graph, illustrate how the equilibrium price, yield
to maturity, and quantity changes as a result of:
A) an increase in expected inflation. Explain the movement from
one equilibrium to another.
B) A decrease in the riskiness of bonds. Explain the movement
from one equilibrium to another.
C) an increase in the government budget deficit. Explain the
movement from one equilibrium to another.
Neatly draw and label both the market and representative firm graph
for a firm in a perfect competition which is earning an economic
loss in the short run and should choose to operate at a loss. What
is going to happen in the long run? How will this affect the
graph?
Graph 1
Draw an AD/SRAS/LRAS graph in initial long run equilibrium.
Label the vertical and horizontal axes appropriately. Clearly
identify the original price and real GDP level. On this graph,
demonstrate what happens to the aggregate price level and real GDP
when the Federal Reserve Bank runs expansionary monetary policy.
Explain why you have shifted the curve you did and the direction
you have shifted it. Identify whether the shift has caused a
recessionary or inflationary gap.
Graph 2
Draw...