Question;Some students have difficulty understanding the laws of;supply and demand and the difference;between changes in demand (supply), which are caused by;changes in the respective;determinates of demand or supply, and changes in quantity;demanded (supplied) which result;from changes in the price of the good or the service.;Before you complete this assignment, I suggest that you;again review Chapter 3 and my lecture;material provided this week. There are some basic principles;which must be followed when;constructing supply and demand graphs, for example, price is;always on the vertical axis and;output (quantity) on the horizontal axis.;I also strongly suggest that you review the website Economic;Basics: Demand and Supply and;the videos Supply & Demand Graphing Using Excel and the;Macroeconomics for MBA YouTube;Channel, from the Internet which can be found through these;links.;If you have questions, remember to post them to the General;Questions area of the Discussion;forum.;Problem 1;For each of the following draw a separate diagram to;demonstrate the answer. (Hint: Remember;the difference in a change in demand [supply] and a change;in quantity demanded [supplied].;Don't shift both curves unless appropriate). Describe what;happens to equilibrium price and;sales. Explain why or why not this makes sense in the real;world.;-AShow the effect on the U.S. new construction residential;housingMARKET in the event of a;severe economic recession.;-BShow the effect on the U.S. air travelMARKET if American;Airlines unexpectedly folds (ceases;operations) overnight.;-CShow the effect on the U.S. domestic carMARKET if the;price of foreign cars increases due to an;exchange rate shock.;-DShow the effect on theMARKET for large SUVs if the price;of gasoline in the U.S. comes to rest at;greater than $4 per gallon.;-EShow the effect of setting the price of Super Bowl tickets;at a price lower than equilibrium price.;Internet Questions;Question 1;Visit: CNN.com;Go to www.cnn.com and do a search using keywords:CRUDE OIL;prices. Find an article which;discusses recent changes in the price ofCRUDE OIL. I want;you to 1) in one full page, discuss the;reasons stated in the article explaining why the price of;crude oil has changed, and 2) use;supply and demand graphs to illustrate what is being;discussed in the article.
Paper#56498 | Written in 18-Jul-2015Price : $42