Chapter+6+HW

Answer questions #1-7 on pg 131 1. Equilibrium is unique because it has the demand and quantity supplied are equal. 2. When everyone wants a video game and theirs not enough of them to sell its a excess demand situation. 3. Price ceiling is a MAXIMUM price that can be legally charged for a good while price floor is the MINIMUM price for a good or service. 4. Rent Control works by managing the amount paid to prevent inflation during a housing crisis. 5. A) The management and professional category B) The categories transportation, and storage  service  C) The workers might be laid off because the employer cant afford to pay them.  6. Benefits of a price ceiling are that a customer can rely on the price to be consistent while a drawback might be not enough items to sell so price might rise.  7. A=equilibrium  B=disequilibrium point  C=supply  D=price ceiling  E=price flooring  F=demand

Mar 22 - 6.2 Read pg 133-137...Answer questions #1-5 on pg. 137 Job and Checking Account Due <span style="font-family: Symbol,sans-serif;">1. When quantity suply is greater than quantity demanded surplus occurs. <span style="font-family: Symbol,sans-serif;"> 2. An example of a search cost would be the cable bill watching T.V for a job. <span style="font-family: Symbol,sans-serif;"> 3. A )lower demand, lower equilibrium, lower cost <span style="font-family: Symbol,sans-serif;">B)increase production, lower price, lower equilibruim <span style="font-family: Symbol,sans-serif;">C)increase demand, increase price, increase equilibrium <span style="font-family: Symbol,sans-serif;"> 4. Some businesses will have to close permanently or for a little while, also they will have to save money to but the product. <span style="font-family: Symbol,sans-serif;"> 5. A) Increased, more people need it and will pay more for the good. <span style="font-family: Symbol,sans-serif;">B) $20.00 and 150 units <span style="font-family: Symbol,sans-serif;">C) $25.00 and 180 units <span style="font-family: Symbol,sans-serif;">D) Supply falls, demand goes up, leaving the price equilibrium to rise. <span style="font-family: Symbol,sans-serif;">E) $30.00 and 210 units

1. A supply shock affects equilibrium price by raising it and lowering the overall quantity. 2. Rationing is different from a price-based market system because it makes it so people with more cash than normal can but it because they need it and will throw the cash down for it, while a price-based market system makes it so the majority of people can afford the product and would be willing to pay for it. 3. Three reasons a price-based system works more efficiently than central planning are flexibility, a larger selection of goods, and the resources. 4. Two examples of situations in which prices gave me an incentive to purchase a good are when i got a $10 certificate to a skate-shop when i spend $25 or more, and when i saw baseball gloves were 35% off i decided i needed a new one.
 * Mar 23 - 6.3 Read and Take Notes...Answer Questions #1-4 on pg. 144 **

<span style="font-family: arial,helvetica,sans-serif; font-size: 13px; line-height: 19px;">1. equilibrium 2. search costs 3. rationing 4. shortage 5. excess supply 6. excess demand 7. price floor
 * Chapter 6 Review pg 146 #1-7, 9-16 **

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