Chapter 7 section 4

1. How is equilibrium price determined?

2. How do shifts in equilibrium price occur?

3. How do price ceilings and price floors restrict the free exchange of prices?

4. Look at figure 7.12 on pg. 195, what could happen if instead, scientists proved that listening to music decreased life span?

5. Look at figure 7.13 on pg. 196, what is the surplus of workers with a price floor of $5.15 per hour wage?

6. Scalpers selling high-priced, limited tickets to the Super Bow- are part of the black market. How do price ceilings on tickets to sporting events lead to shortages?

7. If you had to guess the relative price elasticities of demand for iPhones compared to that of insulin needed by diabetics, what would your guess be?