“The Market Forces of Supply & Demand ”
Faculty of Economics UDC
TEACHER: CLAUDIA MARCELA PRADO MEZA
TEAM #5 : LARIZA CHONG AFRA LOPEZ CINTIA VAZQUEZ IVAN ALEXIS WORK: HOMEWORK IN TEAMS
EXERCISES OF PAGES 90 - 92
QUESTIONS FOR REVIEW
What is a competitive market? Briefly describe the types of markets other than perfectly competitive markets. What determines the quantity of a good that buyers demand?
What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downward? Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the demand curve? Does a change in price lead to a movement along the demand curve or a shift in the demand curve? Popeye’s income declines and, as a result, he buys more spinach. Is spinach an inferior or a normal good? What happens to Popeye’s demand curve for spinach? What determines the quantity of a good that sellers supply?
What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upward? Does a change in producers’ technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve? Define the equilibrium of a market. Describe the forces that move a market toward its equilibrium. Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, What happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza? Describe the role of prices in market economies.
PROBLEMS AND APPLICATIONS
Explain each of the following statements using supply and demand diagrams. a. When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country. b. When the weather turns warm in New...
Please join StudyMode to read the full document