Explain what happens when prices are set above equilibrium. What conditions exist in disequilibrium and how does the market adjust back to equilibrium? Draw a graph to illustrate and include relevant labels.

Which of the following is an example of a demand shock?     1)  Hurricane Katrina knocks out oil drilling platforms in the Gulf of Mexico.   2)  Consumers become worried about job loss and buy fewer goods and services than expected.   3)  Floods in the Midwest destroy crops.   4)  The Federal government unexpectedly requires automobile producers to raise fuel efficiency standards.

Question 4 . Changes in prices can be attributed to shifts in the supply curve, the demand curve, or both. In this module we learned several variables that can shift the curves (price of related goods, changes in expectations, etc.) According to the Hoffower article, what variable is likely to be the cause of increased college tuition from the demand side? What variable on the supply side?

What are the limitations of Samuelson general equilibrium model

What is the equilibrum price and Quantity on the following:   a) Demand   p = 100-5q,  Supply p = 0+10q, b) Demand p = 100, Supply p = 20+4q

how to plot the following points?

What do price level changes affect when dealing with demand and supply curves?

Compare and contrast the law of demand vs. the law of supply. Keeping the law of demand and the law of supply in mind, consider the following: on a typical day, there are millions of stocks sold on the stock market. The number of shares sold always equals the number of shares purchased. This means the quantity of each company’s shares demanded equals the quantity supplied. If that is true, why do stock prices constantly change? Doesn’t this go against the law of supply and demand?

During an economic downturn, households respond to a decline in income by reducing taxes.

Scenario 1: The economy enters a recession driving down the demand for homes nationwide.