Thursday, October 28, 2010

Supply and demand questions

1. Assume that the economy of the country of Alpha is experiencing increasing unemployment. Steak is considered a normal good in Alpha. Using the supply and demand graph illustrate the impact of the increasing unemployment on the market for steak in Alpha.
2. Assume that the economy of the country of Alpha is experiencing increasing unemployment. Hamburger is considered an inferior good in Alpha. Using the supply and demand graph illustrate the impact of the increasing unemployment on the market for steak in Alpha.
3. The country of Alpha experiences an increase in immigration that leads to an additional one million consumers. What will be the affect on this immigration on Grog the popular drink of Alpha. Illustrate the impact on price and output using a supply and demand graph.
4. A plague has a devastating impact on the population of Alpha. Illustrate using a supply and demand graph how this will impact the market for chicken.
5. The government of Alpha imposes a per-unit tax on Brureff soda. Given that Brureff has a relatively elastic demand, illustrate the impact of this tax on price and quantity using a supply and demand graph.
6. The government of Alpha imposes a per-unit tax on Brureff soda. Given that Brureff soda has a perfectly inelastic demand, illustrate the impact of this tax on price and quantity using a supply and demand graph.
7. Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the price and quantity of coffee.
8. Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the price and quantity of cream.
9. The two favorite juice drinks in the Alpha economy are reffberry and fruitbru. Consumers enjoy both drinks but some have a slight preference for reffberry while others have a slight preference for fruitbru. The makers of reffberry have invested in new technology that increases their productivity. This technology is not yet adaptable for the production of fruitbru. Use a supply and demand graph to illustrate the impact of the new technology on the reffberry market.
10. The two favorite juice drinks in the Alpha economy are reffberry and fruitbru. Consumers enjoy both drinks but some have a slight preference for reffberry while others have a slight preference for fruitbru. The makers of reffberry have invested in new technology that increases their productivity. This technology is not yet adaptable for the production of fruitbru. Use a supply and demand graph to illustrate the impact of the new technology on the fruitbru market.
11. Gasoline powered autos and electric powered autos are substitute goods and have relatively elastic demands. Assume that the price of gasoline increases by 30 percent. Use a supply and demand graph to illustrate the impact of this increase in the price of gasoline on the market for gasoline powered autos.
12. Gasoline powered autos and electric powered autos are substitute goods and have relatively elastic demands. Assume that the price of gasoline increases by 30 percent. Use a supply and demand graph to illustrate the impact of this increase in the price of gasoline on the market for electric powered autos.
13. A major news source reports an outbreak of salmonella affects the peanut butter snacks industry. Use a supply and demand graph to illustrate the immediate impact on price and quantity of this news
14. In the past,the cost of Private University is $45,000 per year and the cost of State University is $17,000 per year. Both universities have a fixed number of seats available for the coming school year. Both schools have excellent academic reputations. A major recession occurs. Assume that both universities have tuition costs that are influenced by the number of applications they receive. Use a supply and demand graph to illustrate the impact of the recession on price and quantity for Private University.
15. In the past, the cost of Private University is $45,000 per year and the cost of State University is $17,000 per year. Both universities have a fixed number of seats available for the coming school year. Both schools have excellent academic reputations. A major recession occurs. Assume that both universities have tuition costs that are influenced by the number of applications they receive. Use a supply and demand graph to illustrate the impact of the recession on price and quantity for State University.
16. The domestic steel industry of Alpha competes with imported steel from the country of Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply and demand graph to illustrate the impact of the subsidies on steel made in Tucumcari.
17. The domestic steel industry competes with imported steel from the country of Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply and demand graph to illustrate the impact of the subsidies on the price and quantity of steel made in Alpha.
18. The domestic steel industry competes with imported steel from the country of Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply and demand graph to illustrate the impact of the subsidies on the wage and quantity of workers in the market for steel workers in Alpha.

19. The pork industry is dominated by large corporate farms that pollute the underground water table with waste material from the slaughter of pigs. The farms ignore this pollution. Use a supply and demand analysis to illustrate the impact of this avoidance on the pork industry.
20. Assume that the favorite dating activity of teenagers is going out to dinner. The second favorite dating activity of teenagers is going out for ice cream. Assume that because of a recession there will be far fewer jobs available for teenagers this summer. Use a supply and demand graph to illustrate the impact of fewer jobs on the price and quantity of the typical dinner meal at a restaurant.
21. Use a supply and demand graph to illustrate the effects on price and quantity of milk from the following simultaneous events:
A. The cost of feed used for milking cows increases.
B. A highly regarded scientific study reveals that drinking two glasses of milk a day helps to reduce weight.

22. Use a supply and demand graph to illustrate the effects on price and quantity college enrollment from the following simultaneous events:

A. The government provides additional money for college scholarships directly to high school seniors.
B. Because of serious loss of value in their endowments, colleges reduce the number of faculty by an average of 20%.

23. Use a supply and demand graph to illustrate the effects on the market price and quantity of steel from the following simultaneous events:

A. The government provides health care insurance that reduces the cost of labor to industry.
B A major project to renovated bridges increases the need for steel.

24. Use a supply and demand graph to illustrate the effects on the market price and quantity of oil from the following simultaneous events:

A. Alternative energy resources begin to provide 20% of energy needs to businesses and households.
B. A tariff is imposed on imported oil.

25. Use a supply and demand graph to illustrate the effects on the market price and quantity of bricked patios from the following simultaneous events:

A. Masons take a 25% cut in pay
B. Unemployment reaches 10%

Tuesday, February 9, 2010

February Essay

Governor Crist Invites Students to Participate in Sunshine Week Essay Contest

https://webmail.duvalschools.org/exchweb/bin/redir.asp?URL=http://www.flgov.com/og_home

TALLAHASSEE – Governor Charlie Crist today announced Florida’s 2010 Sunshine Week “Government in the Sunshine” Web site and invited Florida students in grades 9-12 to participate in the Florida Sunshine Week essay contest. Observed March 14-20, 2010, Sunshine Week celebrates Florida’s laws dedicated to making state and local government more accessible to the public.

“This year’s Sunshine Week Essay Contest provides an opportunity for high school students to focus on the First Amendment and the importance of open government,” said Governor Crist. “Openness and transparency must be one of government’s top priorities in order to ensure citizens can continue to hold their leaders accountable.”

The essay contest is open to all Florida high school students in grades 9-12 and the winner will be announced during the week of March 8, 2010. The first-place winner will receive a $2,500 scholarship, the second-place winner will receive a $1,500 scholarship, and third place will receive a $1,000 scholarship. The contest is supported through the Volunteer Florida Foundation. Winners will be invited to attend an event at the Governor’s Mansion.

Guidelines

After reading the First Amendment to the United States Constitution, contest participants must explain the importance of one or more of the civil liberties found in the First Amendment and how Florida’s open government laws protect these liberties.
Each student may enter only one essay, no longer than 500 words and typed or handwritten in print, rather than cursive writing.
Essays must include the student’s name, home address, telephone number, school the student attends, grade level and essay title.
Essays must be accompanied by a parental waiver form, which can be found at https://webmail.duvalschools.org/exchweb/bin/redir.asp?URL=http://www.flgov.com/og_sunshine_essay. For electronic entries, the parental waiver may be typed, but if chosen as a winner it will be verified.

Entries must be emailed to SunshineEssay@myflorida.com or mailed to: The Executive Office of the Governor, Attention: Sunshine Week Essay Contest, 400 South Monroe Street, The Capitol, Suite PL-04, Tallahassee, Florida 32399-0001. Entries must be emailed or postmarked no later than 5:00 p.m. EST on Thursday, February 18, 2010.

In addition to the essay contest this year, teachers also have the opportunity to engage their students in activities relating to “Government in the Sunshine." The crossword puzzle and word search may be accessed and downloaded at file:///C:/Documents%20and%20Settings/carrinj/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/OLK54/www.flgov.com/og_sunshine.

About Sunshine Week

In 2002, Sunshine Sunday was launched by the Florida Society of Newspaper Editors in response to increased public and legislative awareness of the open government laws. After Florida’s trailblazing actions to establish Sunshine Laws, many other states have adopted Sunshine Sunday, which resulted in the American Society of Newspaper Editors designating a Sunshine Week, which started in March of 2005.

Governor Crist’s dedication to the Sunshine Laws is clearly evident. In his inaugural address, Florida’s 44th Governor made open government a top priority. He quoted President Abraham Lincoln, pledging under his watch Florida government would be “of the people, by the people and for the people.” The next day in his first Executive Order, Governor Crist established the Office of Open Government and charged it with providing the Governor’s Office and all state agencies the tools necessary to serve the people of Florida in a professional and efficient manner.

For more information, please visit www.flgov.com/og_home.

Please see the First Amendment:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Please see Sunshine Law @ http://www.myflsunshine.com/sun.nsf/pages/Law

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Friday, January 15, 2010

January Essay Prompt

3. Two competing retail firms, Red Shop and Blue Mart, are studying potential locations for new stores in the
suburbs of a major city. Each firm must choose between a location north of the city and a location south of the
city. The payoff matrix is shown below, with the first entry in each cell indicating Red Shop’s daily profit and
the second entry indicating Blue Mart’s daily profit. Both firms know all of the information in the payoff matrix.
Blue Mart
North South
North $900, $1,800 $3,000, $3,500
Red Shop
South
$5,000, $4,000 $1,500, $1,000
(a) If Red Shop chooses a location south of the city, which location is better for Blue Mart? Explain.
(b) Is choosing a location to the south of the city a dominant strategy for Red Shop? Explain.
(c) If the two firms cooperate in choosing locations, where will each firm locate?
(d) Assume that the south suburb has enacted an incentive package to attract new business. Any firm that
locates south of the city will receive a subsidy of $2,000 per day. Redraw the payoff matrix to include the
subsidy.
STOP
END OF