Assignment
1. Does a change in consumers tastes lead to a movement along the demand curve or a shift in the demand curve? Does a change in price lead to a movement along a demand curve or a shift in the demand curve? Explain your answers.
2. Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and price in the market for pizza?
3. Does a change in producers technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve?
4. Describe the equilibrium of a market. Describe the forces that move a market toward equilibrium.
5. Why are scalpers able to resell tickets to the Final Four basketball games at such high prices?
6. Discuss some of the reasons gasoline prices have fallen rather dramatically in 2014 and into 2015. Who benefits? Who loses? Will consumers increase their purchases of gas guzzling vehicles?
Questions from Schiller the Economy Today 13e and from Macroeconomics Mankiw 7th edition.