ECON REVIEW
GDP per person
GDP/ pop
In an attempt to increase the consumption of healthy foods, the government offers subsidies to the producers of kale. Show the effect of this subsidy by shifting one or both of the curves in the market for kale shown in the graph.
supply right
The graph shows the market for corn with a price ceiling of $7. Fill in the blanks with the correct terms and numbers. After the price ceiling is in place, how many bushels of corn are bought or sold? b.The market is not in equilibrium after the price ceiling is imposed. Rather, there is a shortage of how many units?
a. 5 b. demand - supply
deadweight loss, suplrus
triangle formula 1/2bh
Calculating CPI
(cost of basket in current year/cost of basket in base year) x 100
Suppose the accompanying graph depicts a market for one pound bags of candy. Place the line labeled Excess Demand at a price that would generate an excess demand (shortage). Then, determine the size of the excess demand.
- excess below eq. - subtract demand quantiy from supply
The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes consumer confidence. Move the supply and/or demand curves to reflect the primary effect this would have on the market for online music. You can assume that online music is a normal good. Also select the end result of equilibrium price and quantity.
- less demand eq $ decrease eq quantity decrease
binding price floor binding price ceiling
1. above eq (surplus) 2. below eq (shortage(
ch5 flow diagram
Businesses sell products and buy resources whereas households buy products and sell resources .
Calculating Nominal GDP
Nominal GDP= real gdp/ (base year index divided by current year)
calculating comparative advantage graph
X: Y/X (1 x costs ___ Y) Y: X/Y (1 y costs ___ X)
A) Move the supply and/or demand curve to illustrate how an across the board cut in the price of all apps on the Apple App Store affects the market for iPhones. B) Move the supply and/or demand curve to illustrate how a decrease in the price of Samsung's current Galaxy smartphone impacts the market for iPhones.
a) demand right (complementary) b) demand left (sub)
The government purchases: 3.203.20 trillions of rupees.Individuals consume: 8.908.90 trillions of rupees.Individuals save: 5.145.14 trillions of rupees.Businesses invest: 1.701.70 trillions of rupees.Foreigners spend: 0.690.69 trillions of rupees to purchase Pakistani firms.Pakistan imports: 2.672.67 trillions of rupees.Pakistan exports: 1.321.32 trillions of rupees.
add everything except savings
Gross National Product (GNP)
all goods produced abroad using USA
Suppose the cost of lithium-ion batteries, an input into the production of electric vehicles, has dropped more steeply than expected. The accompanying graph depicts a market for electric vehicles. Demonstrate the effect of a reduction in the price of lithium-ion batteries by adjusting the accompanying diagram.
graph: Supply right Demand stay Equilibrium price decreases Equilibrium quantity increases
After graduating from college in 2010, Art Major's starting salary is $40757.0040757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, or an escalator clause, in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table, how much will Art Major earn in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.
new salary= salary in original year× (current year index/ original year index)
fixed capacity growth
- recovery - short term
The graph represents the market for soft drinks. Suppose that one of the industry's major suppliers of soft drinks has decided to exit the market to focus on its snack foods. At the same time, the average price of soft drinks has increased and the total amount of soft drink sales has increased. Manipulate the graph to demonstrate these changes in the market for soft drinks.
- supply decrease - demand increase - show increase price and quantity The scenario described can be represented by a leftward shift of the supply curve as one firm exits the market. This alone would lead to an increase in the equilibrium price. However, the description also includes an increase in total sales. Note that this implies that the equilibrium must be to the right of the initial equilibrium. This can only be explained by an increase in demand that more than offsets the reduction in the equilibrium quantity that results from the leftward shift of the supply curve.
Suppose that a major luxury car producer exits the market in order to produce more economy cars. At the same time, a market research group reports that the average price of a luxury car is increasing and the number of luxury cars sold is increasing. Manipulate the graph to demonstrate what must be happening to supply and demand.
- supply left - demand right - show increase price and quantity
