ECON 312 SUPPLY ANS DEMAND PROBLEMS

ECON 312 SUPPLY AND DEMAND PRACTICE PROBLEMS
 Question 1
For this home work assignment you need to look at the supply and demand determinates and figure which curve you are moving. You need to draw the graphs, tell me what impact that had on the supply, demand, price quantity and  equilibrium.
1)         Mad Cow Disease has struck to cattle market. Determine what will occur in the:
            a)  market for ground beef
            b) market for ground turkey
 
2)         An increase in the price of ice cream would cause what to occur in the market for frozen yogurt?
 
3)         If there is an increase in the price of leather what will occur in the baseball glove market?
 
4)         A sudden increase in the supply of peanuts has drastically reduced the price of peanut butter. What will occur to the market for Jelly?
 
5)         What would happen the market for restaurant pizza if the price of flour increased and the price of Chinese restaurant meals increased?
 
6)         If the price of DVD players fall, what would occur in the market for VCRs?
 
7)         Medical society has recently announced that a glass of red wine in the evening can reduce the risk of heart disease. An arctic front has caused a large freeze in Central California and greatly reduced the crop of grapes. What will occur to the red wine market?

 Question 2
Supply and demand show the relationships between two main variables, price and quantity. How are they depicted in demand, and in supply? What other factors impact the relationships between price and quantity in supply and demand? Which factors are more influential?

Question 3
Elasticity shows the responsiveness of supply or demand to changes in price. What are the factors exerting influence on price elasticities of supply and demand?