02/10/15 ECON Homework

February 10, 2016

Copy and answer questions 1-13 on page 122-123 to review Chapter 5. Due on Friday.

Economics

Chapter 5 Supply
Section 3 Changes in Supply

Factors that will shift the supply curve:

1. Subsidies – Why?
To encourage producers to produce what the nation needs.
To protect young and growing industries from foreign competition.
By lowering the marginal cost at all levels of output, shifting the supply curve to the right. When that happens, it generally lowers the price of the good to the public.
2. Excise Tax
Often used to discourage the sale of harmful product.
Examples: Tax on tobacco and alcohol.
Tax on gas guzzlers for cars, not SUVs.
Causes the supply curve to shift to the left by increasing the price of the good.
3. Regulation
Government intervention in a market that affects prices, quantity, or quality of a good.
Examples:
Emission control on cars.
Airbags for cars.
Specially formulated gasoline for California.
4. Seller Expectations
If the sellers are expecting a rise in the price of the goods, then the seller will hold back the goods until the price has risen.
5. Changes in global economy
Increase in the wages of foreign workers.
New technological inventions.
New discovery of supply from elsewhere.
Import restrictions.


02/09/16 WH Homework

February 9, 2016

Copy and answer the questions below.

Ch. 11: World War I and the Russian Revolution

Section 1: The Great War Begins

Critical Thinking
1. Why did Archduke Francis Ferdinand of Austria-Hungary’s trip to Sarajevo upset Serbians?
2. How did Gavrilo Princip set off WWI?
3. What was Russia’s reaction when Austria declared war on Serbia on July 28, 1914?
4. How did France get drawn into the conflict?
5. What was Germany plan for victory against France? How did the plan draw Britain into war?
6. Why were young men on both sides eager to fight when WWI started?


02/05/16 ECON Chapter 5-2 Worksheet

February 5, 2016

Ch05-Sec2 WORKSHEET


02/04/16 ECON Notes

February 4, 2016

Ch. 5 Supply

Sec. 1 Understanding Supply

1. What are the two movements in the market that are important for the creation of the law of supply?

Firms changing their level of production (output).
Firms entering and leaving the market.

2. How does the search for profit affect the decisions of suppliers?

The higher potential for profit will encourage suppliers/producers to enter a market.

3. What is a good time for producers to enter a market?

When the prices are rising or if there is a potential increase in profit (when demand is increasing) for a certain good, it is usually a good time to enter a market.

4. What happens if there are too many producers in the market?

The potential for profit will decrease and some will choose to drop out of the market.

5. How is the elasticity of supply similar to the elasticity of demand?

Both respond to a change in the price, but elasticity of supply measures how producers respond to a change in price where as the elasticity of demand measures the reaction of consumers.

6. Predict what will happen to quantity of oil when the price rises? How about when it falls?

Price Rising = More oil
Price Falling = Less oil

7. Describe the supply curve.

The horizontal axis measures the quantity of the good supplied at a certain price rather than quantity demanded. Unlike the demand curve, it rises from left to right.

8. What is the key factor that determines whether a good will be elastic or inelastic?

Time is the most important factor. When the producers are given ample amount of time, they can usually adjust their output to meet the changes in demand.

9. As a producer, what would you do if the price of the good that you supply has been dropping for several years?

I would most likely leave the market and enter another market that is more profitable.


02/04/16 GOV’T Homework

February 4, 2016

Complete 3 pages of Cornell notes for Chapter 5-3 from page 126-131.


02/03/16 ECON Homework

February 3, 2016

Copy and answer questions 1-14 on page 98-99 to review Chapter 4. Due on Friday.


02/02/16 ECON Homework

February 2, 2016

Chapter 4 Demand
Section 3 Elasticity of Demand

Calculate the elasticity of demand for the following scenarios and identify whether the demand is elastic, inelastic, or unitary elastic.

Elasticity= Percentage change in quantity demanded divided by Percentage change in Price

If elasticity is…
Greater than 1 = elastic
Equal to 1 = unitary elastic
Less than 1 = inelastic

1. Last week, Pizza Hut sold 300 pizzas for $5 per pizza. This week, when the price increased to $10 per pizza, Pizza Hut was only able to sell 250 pizzas.
2. A book store sold 30 books at regular price on Wednesday. The next day, all of the books were discounted at 20% off of the regular price and a total of 50 books were sold.
3. 50 lbs of fish were sold at the price of $2/lbs. The number of fish sold is expected to increase by 40% when the price per pound is reduced by 20 cents. But due to additional factors, the quantity of fish sold was 5 lbs. less from the estimated amount.


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