Course: ECO 110

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Unit 2 Assignment »

Unit 2 Assignment

Unit 1 Assignment
Unit 2 Assignment

Please complete the following assignment and submit to the Dropbox.

Using supply and demand curves, indicate graphically the effect of each of the following changes in factors of the market on the equilibrium market price. State whether price and quantity increase, decrease, or stay the same. Also, state which curve shifts and which curve is moved along

Remember:

Which determinant ( or shifter)? Which curve? Which direction?

1. Describe the market for orange juice if there is a severe frost that destroys one half of the oranges grown for juice.

2. Describe the competitive market for large, 8 cyl., used cars if the price of gasoline rises drastically.

3. Describe the market for the production of CDs if there is a new technology and new material that makes it less expensive to produce the CDs.

4. Describe the effect on the housing market if people are allowed to withdraw money from their IRAs or 401-K accounts, use the money for a down payment on a house, and pay no tax penalties on the money.

5. Describe the effect on the market for Pepsi if Coke introduces drastic price cuts.