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2015 day 7

Jul 25, 2015

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Bellringer

On slatesIf you could attend any college in the US where would it be?Why did you pick that college?Do you think college is too expensive?What 2 things would happen if the state of AZ lowered the price of college classes to $50 per class?

In your notesFind the equilibrium price of 1 roll of toilet paperPriceQuantity SuppliedQuantity DemandedPrice$0.50$ 1.00$ 1.75$ 2.25$ 3.001003007009001500$ 0.25$ 0.50$ 1.00$ 2.25$ 3.001500900600400300

2. Why might a politician argue this isnt a fair price for large families?

Toilet paper

DSPQ

At your tablesSay the government, to help large families, made it illegal for the price to be higher than $0.50 per roll.What would happen to the amount of toilet paper people would want to buy?What would happen to the amount of toilet paper producers would want to sell?What would happen to the number of sheets per roll?What would happen to the texture of the toilet paper?What other markets might be effected? (paper products?)Who would get first chance at buying the toilet paper?What would happen to the level of corruption in the country?

Toilet paper

DSPQ

Surely no country would try this.

Price CeilingDesigned to help consumersIllegal to charge higher than the priceExample: Venezuela TPProblems?Quality Shortages

Price CeilingDesigned to help consumersIllegal to charge higher than the priceExample: Rent ControlsProblems?QualityShow rent control clip

Hand out worksheetOn slatesList 4 jobs you could do without any special skillsList 4 jobs you could do that require skills, licenses or education

Types of laborSkilled labor: require skills, licenses or educationSalary?Give 3 examples

Unskilled labor: lower human capital, physical, entry levelSalary?Type of person?Give 3 examplesWho are you right now? In 10 years?

Students, low skilled immigrants, uneducatedProfessionals, skilled immigrants, educated

Germany lacks a min wage Around the World

Conclusion?Minimum Wage GraphPrice floor on unskilled labor marketSubway test, $5/hour$7/hour, $10/hour,$15/hour, $25/hour, Minimum Wage assignmentRead both articlesIdentify 2 main ideas from each sideWrite a 2 paragraph letter to your congressman asking them to vote FOR or AGAINST the $15/minimum wage

Walter WilliamsElizabeth Warren

Congressman GrijalvaOutline: PG 1 intro/background debate sides, main ideasPG 2 How do you think they should vote? Support with economic ideas

Congresswoman.Exam ReviewWhy do you think companies would rather sell products with an inelastic demand? (hint look at the Y-axis of your graph)

What is the price when this market is at equilibrium?Around 33Around $ 3.25Around $ 2.25Around p *P

21Economists would describe this demand curve as:elasticinelasticquantityinferior

How many more goods will this company sell if they lower the price from $1 to $0.75?36912

Which of the following goods would most likely have this sort of demand?Toilet paperHot cheetosWater on a 110+ degree dayLifesaving drugs

Economists would describe this demand curve as:elasticinelasticquantityinferior

Which good matches this demand curve?Rims for a truckhamburgersPlastic surgeryWater on a 110+ degree day[Default][MC Any][MC All]

How many FEWER goods would this company sell if they raised their price from $0.50 to $1?4321[Default][MC Any][MC All]

Tickets to the movies have a more elastic demand curve, so if a company wanted to increase their revenue, they should:Raise their priceLower their priceKeep their price the sameConsider the substitutes

[Default][MC Any][MC All]

Lifesaving, pharmaceutical drugs have an inelastic demand curve, so if a company wanted to increase their revenue, they should:Raise their priceLower their priceKeep their price the sameConsider the substitutes[Default][MC Any][MC All]

What probably caused this change?Bus ridership increasesNew car sales declineUnemployment decreasesConsumers buy more SUVs[Default][MC Any][MC All]

GasolinePriceQuantity

What probably caused this change?Price of pizza increasedPopulation of Tucson decreasedPrice of soda increasedAverage income in Tucson decreased[Default][MC Any][MC All]

Tacos

What probably caused this change?Price of new clothing decreasedPopulation of Tucson decreasedPrice of used clothing increasedAverage income in Tucson decreased[Default][MC Any][MC All]

Used Clothing

What probably caused this change?Bus ridership increasesTablet computer sales increaseUnemployment decreasesPencil prices decrease[Default][MC Any][MC All]

Notebook paperPriceQuantity

What probably caused this change?Average income in Tucson decreasedPopulation of Tucson decreasedPrice of Pepsi decreasedPrice of Coke increased[Default][MC Any][MC All]

Pepsi

What probably caused this change?Average income in US decreasedNumber of new brokerage accounts triples in USSales of iphone declineSales of Blackberrys increase[Default][MC Any][MC All]

Shares of Apple stock

What is the price when this market is at equilibrium?Around 40Around $ 6 Around $ 3Around $ 30[Default][MC Any][MC All]PQ

SDWidgets

36How many widgets will be supplied in this market when the price is $8?Around 40Around 50Around 30Around $ 30[Default][MC Any][MC All]PQ

SDWidgets

37What might explain this change?Average US income increasedAverage US income decreasedPopulation of US decreasesNew car company begins operationQSDWidgets

New cars

38Based on the change in this graph, which outcome is true?Price of cars will increasePrice of cars will decreaseThere will be no changeQuantity of cars will decrease[Default][MC Any][MC All]QSDWidgets

New cars

39Based on the change in this graph, which outcome is true?Two car companies mergeA new Korean car company begins selling cars in the USPrice of oil increasesPrice of steel increases[Default][MC Any][MC All]QSDWidgetsNew cars

New carsSD

40Based on the change in this graph, which outcome is true?Price of cars will increasePrice of cars will decreaseThere will be no changeQuantity of cars will decrease[Default][MC Any][MC All]QSDWidgetsNew cars

New carsSD

41Based on the change in this graph, which outcome is true?Car companies think price of cars will decline next yearDemand for new cars increasedWages of autoworkers decreasedWages of autoworkers increased[Default][MC Any][MC All]QSDWidgetsNew carsNew carsSD

New cars

42Which graph shows the effect of an increase in immigration on the used car market?Graph AGraph BGraph CGraph D

Graph AGraph BGraph DGraph C

Which graph shows the effect of more expensive gasoline on SUVs?Graph AGraph BGraph CGraph D

Graph AGraph BGraph DGraph C

Which graph shows the effect of a decrease in the price of jet fuel on the airline ticket market?Graph AGraph BGraph CGraph D[Default][MC Any][MC All]

Graph AGraph BGraph DGraph C

Which graph shows a decrease in equilibrium price and an increase in quantity?Graph AGraph BGraph CGraph D[Default][MC Any][MC All]

Graph AGraph BGraph DGraph C

Which will probably happen after the US Airways/American Airlines merger?Lower pricesHigher pricesNo changeThey will become an inferior good[Default][MC Any][MC All]

Which will probably happen if the price of jet fuel declines to the price of airline tickets??Lower pricesHigher pricesNo changeThey will become an inferior good

Which graph shows the effect of a decrease in income taxes on the airline ticket market?Graph AGraph BGraph CGraph D[Default][MC Any][MC All]

Graph AGraph BGraph DGraph C

Smartphone market: Blackberry files for bankruptcyPrices increasePrices decreaseNo changeQuantity will increase[Default][MC Any][MC All]

Smartphone market: plastic prices doublePrices increasePrices decreaseNo changeQuantity will increase[Default][MC Any][MC All]

Smartphone market: Data plan prices increasePrices increasePrices decreaseNo changeQuantity will increase[Default][MC Any][MC All]

Smartphone market: Producers expect the price of smart phones to drop next yearPrices increasePrices decreaseNo changeQuantity will decrease[Default][MC Any][MC All]

Smartphone market: New iphone commercials featuring PittbullPrices increasePrices decreaseNo changeQuantity will decrease[Default][MC Any][MC All]

Flatscreen tv market: trade agreements allow producers to use cheaper labor in South KoreaPrices increasePrices decreaseNo changeQuantity will decrease[Default][MC Any][MC All]

Flatscreen tv market: Producers expect the price of TVs to decline next year.Prices increasePrices decreaseNo changeQuantity will decrease[Default][MC Any][MC All]

Apartment market: Consumers start buying houses again due to bull marketPrices increasePrices decreaseNo changeQuantity will increase[Default][MC Any][MC All]

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