- Prompt: Complete the unit homework questions below and submit them.
- Predict the direction of change for either supply or demand in the following situations:
- Several new companies enter the cell phone industry.
- Consumers suddenly decide SUVs are unfashionable.
- The U.S. surgeon general issues a report stating that tomatoes prevent colds.
- Frost threatens to damage the coffee crop, and consumers expect the price to rise sharply in the future.
- The price of tea falls. What is the effect on the coffee market?
- The price of sugar rises. What is the effect on the coffee market?
- Tobacco lobbyists convince Congress to remove the tax paid by sellers on each carton of cigarettes sold.
- A new type of robot is invented that will pick peaches.
- Nintendo anticipates that the future price of its games will fall much lower than the current price.
- The U.S. Postal Service is facing increased competition from firms providing overnight delivery of packages and letters. Additional competition has emerged because communications can be sent by emails, fax machines, and text messages. What will be the effect of this competition on the market demand for mail delivered by the post office?
- Consider this statement: “Government involvement in markets is inherently inefficient.” Do you agree or disagree? Explain.
- Which of the following are public goods?
C. Cycle helmets
D. City streetlights
- Consider the following demand schedule: