Illustrate and describe the effect on both the demand and supply curves and on equilibrium price and quantity.
Surveys indicate that Americans are becoming more and more dependent on over the counter medications such as Advil. For each of the following two scenarios, illustrate and describe the effect on both the demand and supply curves and on equilibrium price and quantity. Your answer should DESCRIBE in words and ILLUSTRATE IN GRAPHS.
(a) Rise in the price of an important ingredient used as a raw material in making Advil.
(b) A recent publication in Harvard Medical Journal has suggested that persistent use of such medicine may substantially increase the risk of Melanoma.
2. Define “market clearing price”. Why is the market clearing price often described as an equilibrium situation? Support your answer with graphs.
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Q2:
Discuss the Bowles, Edwards, and Roosevelt three-dimensional approach to studying political economy. List and define each dimension. What are the values of their approach and how can they be achieved? How does this approach draw on ideas from Smith, Marx, Keynes, Schumpeter, Coase and Sen? Use relevant examples where possible.
Q3: (resource: understanding capitalism_chapter7-SSA)
a) Define social structures of accumulation and list the four important relationships the “rules of the game” influence and are influenced by.
b) Use all four stages of American capitalism to describe how the capitallabor relationship has evolved under different social structures of accumulation.
c) Give a real life example (NOT FROM THE TEXTBOOK) of how the command element of the three-dimensional approach to economics exists in capital-labor relationships in the current transnational phase of American capitalism (hint: be specific, think of a specific company or corporation and their labor practices).
Q4: (resource- understanding capitalism_class relationship)
Define “class” and “class relationships” and describe the four aspects of the concept of class that are important. How are the concepts of class relationships and economic systems related? Identify the principle income flows for capitalists and workers; do these differences in income flows change the constraints and/or preferences of each group? Discuss specific examples, such as access to political representation or educational opportunity.