Element 1: Relevance of the Topic
Give examples that complement your postings, using personal or work experiences or something that you have read or heard in the media. Present this element in a separate paragraph within your post.
Element 2: Economic Terms
Include three to five critical terms delineated from the textbook chapter of emphasis. Use the words within a complete sentence, and in the appropriate context of the answer required. Key terms only need to be displayed in the student’s original post. Not required for peer review threads.
The Assignment:
Answer the following questions using (75-100 words minimum) for each response.
Include (2) examples and use (3-5) economic key terms, learned in the chapter.
Here are the Economic key terms: Demand schedule, Quantity demanded, Demand curve, Market demand, Law of demand, Substitution effect, Income effect, Ceteris paraibus (“all else equal”) condition, Normal good, Substitutes, Complements, Demographics, Supply schedule, Supply curve, Law of supply, Technological change, Market equilibrium, Competitive market equilibrium, Surplus, and Shortage
(Bold or highlight so that Professor can verify usage and context the terms are used in the answers).
1. Explain the difference between a change in
demand and a change in quantity demanded. Be sure to state what causes each to change and how they differ when graphed.
2. Suppose that the average prices of refrigerators have fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping? Explain.
3. In what way is the demand curve different than the supply curve? List and explain the (5) determinants of demand and (7) determinants of supply.
4. Explain the concept of
consumer surplus compared to producer surplus. Be specific and give examples numerically to support your answer.