Chapter Questions
Provide some examples of markets in which you participated, or will participate in, today. How often were you a buyer/demander? How often were you the seller/supplier? How would a change in price have affected your choices?
. Provide some examples of markets that don't use currency to pay for goods and services.
Explain how looking for someone to marry is like a market. How is a marriage market similar to a labor market?
If the average price of gasoline is $$\$ 3.25$$ per gallon in your town, and gasoline is a perfectly competitive market, explain what might happen and why in your town if the price of gas dropped to $$\$ 0.50$$ overnight? What if it jumped up to $$\$ 10$$ per gallon overnight?
5. Movie stars such as Salma Hayek, Samuel L. Jackson, Dwayne Johnson, and Jennifer Lawrence are paid millions of dollars per movie, which can take as much as six months
Higher average incomes increase the demand for preventative dental visits. Explain why this will lead the quantity supplied of dental visits to increase, but supply will not increase.
Suppose the supply of green tea increases; why is it that equilibrium price and equilibrium quantity move in opposite directions?