Use the demand and supply diagram to explain the difference in
pay between the doctors and the pizza delivery drivers. Show the
diagram and explain why those demands and supply (for the two jobs)
differ from each other.
What is the Law of Demand? Explain the difference between a
change in demand and a change in the quantity demanded. Provide an
example from the gasoline market.
Other than price, what are the determinants of supply? Provide
three examples from the consumer market for gasoline.
What does market equilibrium mean? Provide two examples of how
market equilibrium in the consumer market for gasoline market could
change.
1. Perfect competition vs. monopoly:
a) What is the difference between the demand curve faced by a
perfectly competitive firm and a perfectly competitive industry and
a monopolist firm?
b) What is the difference between the total revenue curve faced
by a perfectly competitive firm and a monopolist firm? How about
the marginal revenue curve?
Building the Supply and Demand Model
Homework
Explain the difference between a change in the quantity
demanded (Qd) and demand (D).
A change in quantity demanded refers
to a movement along the demand curve, which is caused only by a
chance in price. A change in demand means that the entire demand
curve shifts either left or right.
Explain the difference between a change in the quantity
supplied (Qs) and supply (S).
A change in quantity supplied will
imply a...
Explain fully the difference between a negative demand shock and
a negative supply shock. Why is a negative supply shock worse for
an economy compared with a negative demand shock? What policies are
appropriate in dealing with a negative demand shock? What policies
are appropriate in dealing with a negative supply shock?