Read this interesting article!

Click Here for the Forbes Article.

Enjoy! Read this (we may talk about it in a future class!)

This is a qualitative assignment on elasticity to make sure you understand the concepts. I will check the answers to these questions for a completion mark so please make sure you answer all of the questions.

HW on Elasticity

Enjoy economics!

Complete this form!

http://goo.gl/forms/WbSl85Gk2y

Demand:

1.Population and Market Size

-increase means increase in demand

2.Income (Normal/Inferior Goods)

-income up means demand increase for normal good but decrease for inferior goods

3.Price of Related Goods (Complements/Substitutes)

-increase in substitute price means increase in demand

-increase in complement price means decrease in demand

4.Consumer Preferences (Taste/Trends)

5.Consumer Expectations and Unexpected Events

Supply:

1. Number of Producers

-more businesses in a market, more supply. (shifts to the right)

2. Resource Prices

-if the cost of a resource increases, the producer makes fewer. (shifts to the left)

3. State of Technology

-technological progress leads to more efficient production, which means more is produced at each price level. (shift to the right)

4. Producer Expectations and Unexpected Events

-expectations of future prices/events, temperatures, droughts, floods, storms, natural disasters etc. can all affect the supply chain.

5. Prices of Related Products

-a price rise in substitutes may cause producers to make more of current product.

-a price rise in complements may cause producers to make more of current product

Demand Graphs Answers

1. Demand on the whole decreases – Expectations
2. Quantity demanded decreases – Law of Demand
3. Demand on the whole increases- Complements
4.  Demand on the whole increases – Event
5. Quantity demanded increases – Law of Demand
6. Demand on the whole increases – Substitutes
7. Demand on the whole decreases – Negative Population Growth
8. Quantity demanded increases – Law of Demand because cheaper rubber = cheaper tire
9. Demand on the whole decreases – Consumer Preferences
10. Demand on the whole increases – Positive Income

We also went over some Demand determinant examples in class! Thursday and Friday:

1.Brainstorm and/or look online for 2-3 real life examples for each of the determinants of supply at work in the ‘real world’. Include the timeline, the good involved, what occurred and how supply of the good reacted

Note: Some examples may apply to more than one determinant and that is okay.

Excel Guide for you to download!

For those of you that want to go on vacation overseas….

http://ca.reuters.com/article/businessNews/idCAKCN0VC1Q8?pageNumber=2&virtualBrandChannel=0