Questions from Macroeconomics

Q: What does the demand curve tell us about the price that consumers

What does the demand curve tell us about the price that consumers are willing to pay?

Q: List all the influences on buying plans that change demand, and

List all the influences on buying plans that change demand, and for each influence, say whether it increases or decreases demand.

Q: What is the law of supply and how do we illustrate it

What is the law of supply and how do we illustrate it?

Q: List all the influences on selling plans, and for each influence

List all the influences on selling plans, and for each influence, say whether it changes supply.

Q: Why is the equilibrium price the best deal available for both buyers

Why is the equilibrium price the best deal available for both buyers and sellers?

Q: What is the effect on the price and quantity of MP3 players

What is the effect on the price and quantity of MP3 players (such as the iPod) if: The price of a PC falls or the price of an MP3 download rises? (Draw the diagrams!).

Q: What is the effect on the price and quantity of MP3 players

What is the effect on the price and quantity of MP3 players (such as the iPod) if: More firms produce MP3 players or electronics workers’ wages rise? (Draw the diagrams!).

Q: What is the effect on the price and quantity of MP3 players

What is the effect on the price and quantity of MP3 players (such as the iPod) if: Any two of the events in questions 1 and 2 occur together? (Draw the diagrams!).

Q: In April 2014, the money price of a litre of milk

In April 2014, the money price of a litre of milk was $2.01 and the money price of a litre of gasoline was $1.30. Calculate the real price of a litre of gasoline in terms of milk.

Q: The price of food increased during the past year. a

The price of food increased during the past year. a. Explain why the law of demand applies to food just as it does to other goods and services. b. Explain how the substitution effect influences food p...