Assignment:
We learned that the interaction of supply and demand determines prices and output levels in markets. Prices and output levels change when either the demand curve or the supply curve shifts. Sometimes price and output both increase and decrease. Sometimes one increases while the other decreases.
• Consider a situation where the price of a good rises when output increases. For example, lithium is used in rechargeable batteries for computers, phones, other electronic goods, and even certain cars. Demand for lithium was low as recently as the early 2000s. Since then, both the price of lithium and the production of lithium have more than doubled.
• Start your discussion by responding to these questions: o What could explain the simultaneous increases in the price of lithium and the production of lithium? Use supply and demand curves to explain your answer.
o Hint: Price and equilibrium quantity have both increased. Would a shift in the demand curve or a shift in the supply curve lead to this result?
• Be sure to respond to at least one of your classmates' posts. Was their reasoning similar to yours?
• Watch the video, Oligopolies and Monopolistic Competition, to help you prepare for this week's discussion.
• Start your discussion by responding to these questions using the company for which you currently work, a business with which you're familiar, or a dream business you want to start:
o With your selected business in mind, determine if it is competitive, monopolistic competitive, an oligopoly, or pure monopoly. Explain how you drew your conclusion about its market structure.
o How does the business/firm in this industry determine the price it will charge for the products or services it sells?
• Be sure to respond to at least one of your classmates' posts and share an insight or question you have about that business and its market structure.
• Let's talk about two trade-offs we face every day: how we spend our time and money. There are many things we can do with our money. Money spent on one thing isn't available to spend on another. Also, there are many things we can do with our time. We can spend time doing one job or another. We can spend time with family. We can spend time in leisure.
• Start your discussion by responding to these questions:
o Describe a trade-off you have made in terms of your income or your time.
o What choice did you make with your money or time?
o Why did you make that choice?
• Be sure to respond to at least one peer who made a trade-off in their post to which you can relate. Discuss and compare your decisions.
• Watch the video, Revenues, Profits, and Price, to help you prepare for this week's discussion:
• Start your discussion by responding to this question using the company for which you currently work, a business with which you're familiar, or the dream business you want to start:
• What are some key fixed and variable costs for this business? Remember, fixed costs do not change when output changes. That is, fixed costs remain even if the company is producing nothing. Variable costs increase as output increases.
• Be sure to respond to at least one of your classmates' posts and share another idea for a type of cost.