Macro Exam II Essay Ques Fall 2020 PDF

r Name: _ _ _ _ _ _ _ __ ID: A t Short Answer. USE THE BACK OF ONE EXAM PAGE PER ANSWER 36. This question deals with demand and supply and refers you to the table below....

r Name: _ _ _ _ _ _ _ __ ID: A t Short Answer. USE THE BACK OF ONE EXAM PAGE PER ANSWER 36. This question deals with demand and supply and refers you to the table below. a. Given the table, graph the demand and supply curves for flashlights. Make certain to. Jabel equilibrium price and equilibrium quantity. Price ·ouantitvDemanded/Month Quantity Suoolied/Month $5 6~000 10,000 ',· $4 ,·.8,000 8,000 $3. :10;.000 6,000 $2 12,000.4,000 $1 14, 000-.·... 2,000.b. ·What is the equilibrium price and equihmium quantity? c.... Suppose the price is currently at $S. What problem would exist in the economy? What ,would you expect to happen to price? Show. this on your graph. ·d. ·· Suppose the price is cumntlyS2. What problem exists in the economy? What would you.ex.pc:ct to happen to p~cc?.Show this on -your graph. ' ' · 37. · Consider tho following pain of goods. For which of the two goods would you expect the demand to be mme · price elastic? Why?.... · · L. ·water.or diamonds. · ·. ·.. b.. :insulin or nasal decongestant spray... c.. foocUn general or breakfast cereal d. gasoline over the:co111Se of a week or. gasoline over the course of a year.. e. personal computers or mMpenonal _computers 38. Identify the.immecliatceft"ect of each ofthe following events on U.S. GDP and its components. L James receives a Social Security check. · b. ·. John buys an Italian sports car. ·. c. Henry buys domestically produced tools for his construction company 39..·. ·. ··. ·...···.·· ·. '. A. What is the diffc,n:nce between a "change in demand" and a "change in quantity. demanded"?.Graph your answer.· B. For each of the following changes, determine whether there will be a movement along the demand curve (a change in quantity demanded) or a shift in the demand curve (a change in demand).· ·. L a change in the price of a related good b. · a change in tastes c. · a change in the number of buyers- d. a change in price e. a change in expectations f. a change in income 6