Day 7

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Day 7

  1. 1. Bellringer 1. If you could attend any college in the US where would it be? 2. Why did you pick that college? 3. Do you think college is too expensive? 4. What 2 things would happen if the state of AZ lowered the price of college classes to $50 per class?
  2. 2. In your notes Find the equilibrium price of 1 roll of toilet paper Price Quantity Supplied Quantity DemandedPrice $0.50 $ 1.00 $ 1.75 $ 2.25 $ 3.00 100 300 700 900 1500 $ 0.25 $ 0.50 $ 1.00 $ 2.25 $ 3.00 1500 900 600 400 300 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 2.25 2.5 2.75 3 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 2. Why might a politician argue this isn’t a fair price for large families?
  3. 3. Toilet paper 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 2.25 2.5 2.75 3 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 D S P Q
  4. 4. At your tables Say the government, to help large families, made it illegal for the price to be higher than $0.50 per roll. 1. What would happen to the amount of toilet paper people would want to buy? 2. What would happen to the amount of toilet paper producers would want to sell? 3. What would happen to the number of sheets per roll? 4. What would happen to the texture of the toilet paper? 5. What other markets might be effected? (paper products?) 6. Who would get first chance at buying the toilet paper? 7. What would happen to the level of corruption in the country?
  5. 5. Toilet paper 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 2.25 2.5 2.75 3 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 D S P Q
  6. 6. Surely no country would try this….
  7. 7. http://www.huffingtonpost.com/tag/venezuela-toilet-paper-shortage
  8. 8. Price Ceiling Designed to help consumers Illegal to charge higher than the price Example: Venezuela TP Problems? Quality Shortages
  9. 9. Price Ceiling Designed to help consumers Illegal to charge higher than the price Example: Rent Controls Problems? Quality Shortages Stossel Clip
  10. 10. Hand out worksheet
  11. 11. Bellringer 1. List 4 jobs you could do without any special skills 2. List 4 jobs you could do that require skills, licenses or education
  12. 12. Types of labor • Skilled labor: require skills, licenses or education • Salary? • Give 3 examples • Unskilled labor: lower human capital, physical, entry level • Salary? • Type of person? • Give 3 examples Who are you right now? In 10 years? Students, low skilled immigrants, uneducated Professionals, skilled immigrants, educated
  13. 13. Germany lacks a min wage Around the World
  14. 14. #5 OPTIC
  15. 15. Minimum Wage Graph • Price floor on unskilled labor market • Subway test, • $5/hour • $7/hour, • $10/hour, • $15/hour, • $25/hour,
  16. 16. Minimum Wage assignment• Read both articles • Identify 2 main ideas from each side • Write a 3 paragraph letter to your congressman asking them to vote FOR or AGAINST the $15/minimum wage Walter Williams Elizabeth Warren Congressman Grijalva Outline: PG 1 – intro/background PG 2 – debate sides, main ideas PG 3 – How do you think they should vote? Congressman Barber
  17. 17. Exam Re 1. Why do you think companies would rather sell products with an inelastic demand? (hint look at the Y-axis of your graph)
  18. 18. What is the price when this market is at equilibrium? A. Around 33 B. Around $ 3.25 C. Around $ 2.25 D. Around p * P
  19. 19. Economists would describe this demand curve as: A. elastic B. inelastic C. quantity D. inferior
  20. 20. How many more goods will this company sell if they lower the price from $1 to $0.75? A. 3 B. 6 C. 9 D. 12
  21. 21. Which of the following goods would most likely have this sort of demand? A. Toilet paper B. Hot cheetos C. Water on a 110+ degree day D. Lifesaving drugs
  22. 22. Economists would describe this demand curve as: A. elastic B. inelastic C. quantity D. inferior
  23. 23. Economists would describe this demand curve as: A. Rims for a truck B. hamburgers C. Plastic surgery D. Water on a 110+ degree day
  24. 24. How many FEWER goods would this company sell if they raised their price from $0.50 to $1? A. 4 B. 3 C. 2 D. 1
  25. 25. Tickets to the movies have a more elastic demand curve, so if a company wanted to increase their revenue, they should: A. Raise their price B. Lower their price C. Keep their price the same D. Consider the substitutes
  26. 26. Lifesaving, pharmaceutical drugs have an inelastic demand curve, so if a company wanted to increase their revenue, they should: A. Raise their price B. Lower their price C. Keep their price the same D. Consider the substitutes
  27. 27. What probably caused this change? A. Bus ridership increases B. New car sales decline C. Unemployment decreases D. Consumers buy more SUV’s Gasoline Price Quantity
  28. 28. What probably caused this change? A. Price of pizza increased B. Population of Tucson decreased C. Price of soda increased D. Average income in Tucson decreased Tacos
  29. 29. What probably caused this change? A. Price of new clothing decreased B. Population of Tucson decreased C. Price of used clothing increased D. Average income in Tucson decreased Used Clothing
  30. 30. What probably caused this change? A. Bus ridership increases B. Tablet computer sales increase C. Unemployment decreases D. Pencil prices decrease Notebook paper Price Quantity
  31. 31. What probably caused this change? A. Average income in Tucson decreased B. Population of Tucson decreased C. Price of Pepsi decreased D. Price of Coke increased Pepsi
  32. 32. What probably caused this change? A. Average income in US decreased B. Number of new brokerage accounts triples in US C. Sales of iphone decline D. Sales of Blackberry’s increase Shares of Apple stock
  33. 33. What is the price when this market is at equilibrium? A. Around 40 B. Around $ 6 C. Around $ 3 D. Around $ 30 P Q S D Widgets
  34. 34. How many widgets will be supplied in this market when the price is $8? A. Around 40 B. Around 50 C. Around 30 D. Around $ 30 P Q S D Widgets
  35. 35. What might explain this change? A. Average US income increased B. Average US income decreased C. Population of US decreases D. New car company begins operation[Default] [MC Any] [MC All] Q S D Widgets New cars
  36. 36. Based on the change in this graph, which outcome is true? A. Price of cars will increase B. Price of cars will decrease C. There will be no change D. Quantity of cars will decrease Q S D Widgets New cars
  37. 37. Based on the change in this graph, which outcome is true? A. Two car companies merge B. A new Korean car company begins selling cars in the US C. Price of oil increases D. Price of steel increases Q S D Widgets New cars New cars S D
  38. 38. Based on the change in this graph, which outcome is true? A. Price of cars will increase B. Price of cars will decrease C. There will be no change D. Quantity of cars will decrease Q S D Widgets New cars New cars S D
  39. 39. Based on the change in this graph, which outcome is true? A. Car companies think price of cars will decline next year B. Demand for new cars increased C. Wages of autoworkers decreased D. Wages of autoworkers increased Q S D Widgets New cars New cars S D New cars
  40. 40. Which graph shows the effect of an increase in immigration on the used car market? A. Graph A B. Graph B C. Graph C D. Graph D Graph A Graph B Graph D Graph C
  41. 41. Which graph shows the effect of more expensive gasoline on SUV’s? A. Graph A B. Graph B C. Graph C D. Graph D Graph A Graph B Graph D Graph C
  42. 42. Which graph shows the effect of a decrease in the price of jet fuel on the airline ticket market? A. Graph A B. Graph B C. Graph C D. Graph D Graph A Graph B Graph D Graph C
  43. 43. Which graph shows a decrease in equilibrium price and an increase in quantity? A. Graph A B. Graph B C. Graph C D. Graph D Graph A Graph B Graph D Graph C
  44. 44. Which will probably happen after the US Airways/American Airlines merger? A. Lower prices B. Higher prices C. No change D. They will become an inferior good
  45. 45. Which will probably happen if the price of jet fuel declines to the price of airline tickets?? A. Lower prices B. Higher prices C. No change D. They will become an inferior good [Default] [MC Any] [MC All]
  46. 46. Which graph shows the effect of a decrease in income taxes on the airline ticket market? A. Graph A B. Graph B C. Graph C D. Graph D Graph A Graph B Graph D Graph C
  47. 47. Smartphone market: Blackberry files for bankruptcy A. Prices increase B. Prices decrease C. No change D. Quantity will increase
  48. 48. Smartphone market: plastic prices double A. Prices increase B. Prices decrease C. No change D. Quantity will increase
  49. 49. Smartphone market: Data plan prices increase A. Prices increase B. Prices decrease C. No change D. Quantity will increase
  50. 50. Smartphone market: Producers expect the price of smart phones to drop next year A. Prices increase B. Prices decrease C. No change D. Quantity will decrease
  51. 51. Smartphone market: New iphone commercials featuring Pittbull A. Prices increase B. Prices decrease C. No change D. Quantity will decrease
  52. 52. Flatscreen tv market: trade agreements allow producers to use cheaper labor in South Korea A. Prices increase B. Prices decrease C. No change D. Quantity will decrease
  53. 53. Flatscreen tv market: Producers expect the price of TVs to decline next year. A. Prices increase B. Prices decrease C. No change D. Quantity will decrease
  54. 54. Apartment market: Consumers start buying houses again A. Prices increase B. Prices decrease C. No change D. Quantity will increase

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