1. Consider the market for apples. Draw the market diagram for apples and make sure that the diagram is completely labeled.

Market: Apple Market

Price: Price per pound

Quantity: Pound per week

Start the market at a market price of $3 per pound and 14,000 pounds per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) greater popularity for apples

(b) a fall in input prices

ANSWER (I have inserted a photo into this document, but you can just take a photo of all your answers on a piece of paper. Just number the answers please).:

1. Consider the market for apples. Draw the market diagram for apples and make sure that the diagram is completely labeled.

Market: Apple Market

Price: Price per pound

Quantity: Pound per week

Start the market at a market price of $3 per pound and 14,000 pounds per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) less popularity for apples

(b) a fall in input prices

1. Consider the market for apples. Draw the market diagram for apples and make sure that the diagram is completely labeled.

Market: Apple Market

Price: Price per pound

Quantity: Pound per week

Start the market at a market price of $3 per pound and 14,000 pounds per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) price of substitute (oranges) rises

(b) higher product taxes

1. Consider the market for computer software. Draw the market diagram for computer software and make sure that the diagram is completely labeled.

Market: Computer Software Market

Price: Price per subscription

Quantity: Subscriptions per month

Start the market at a market price of $25 per subscription and 2,000 subscriptions per month. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) lesser popularity

(b) improved technology

1. Consider the market for computer software. Draw the market diagram for computer software and make sure that the diagram is completely labeled.

Market: Computer Software Market

Price: Price per subscription

Quantity: Subscriptions per month

Start the market at a market price of $25 per subscription and 2,000 subscriptions per month. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) A rise in input prices

(b) income drops

1. Consider the market for car insurance. Draw the market diagram for car insurance and make sure that the diagram is completely labeled.

Market: Car insurance Market

Price: Price per policy

Quantity: Policies per month

Start the market at a market price of $200 per policy and 12,000 policies per month. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Lower product taxes

(b) Population likely to buy insurance drops

1. Consider the market for car insurance. Draw the market diagram for car insurance and make sure that the diagram is completely labeled.

Market: Car insurance Market

Price: Price per policy

Quantity: Policies per month

Start the market at a market price of $200 per policy and 12,000 policies per month. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Price of complement (cars) fall

(b) A fall in input prices

1. Consider the market for shoes. Draw the market diagram for shoes and make sure that the diagram is completely labeled.

Market: Shoe Market

Price: Price per pair of shoes

Quantity: Shoes per week

Start the market at a market price of $60 per pair of shoes and 150,000 shoes per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Income rises

(b) Population likely to buy rises

(CAREFUL: Is this two demand shifts?Two Supply shifts? One demand one supply? - no more hints after this problem)

1. Consider the market for shoes. Draw the market diagram for shoes and make sure that the diagram is completely labeled.

Market: Shoe Market

Price: Price per pair of shoes

Quantity: Shoes per week

Start the market at a market price of $60 per pair of shoes and 150,000 shoes per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Tastes shift to lesser popularity

(b) Lower product taxes

1. Consider the market for shoes. Draw the market diagram for shoes and make sure that the diagram is completely labeled.

Market: Shoe Market

Price: Price per pair of shoes

Quantity: Shoes per week

Start the market at a market price of $60 per pair of shoes and 150,000 shoes per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Improved technology

(b) Lower product taxes

1. Consider the market for skateboards. Draw the market diagram for skateboards and make sure that the diagram is completely labeled.

Market: Skateboard Market

Price: Price per skateboard

Quantity: Skateboards per week

Start the market at a market price of $150 per skateboard and 50,000 skateboards per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) price of complement (skateboard clothes) fall

(b) a fall in input prices

1. write your OWN QUESTION (and write the answer).

Consider the market for ________________ .Draw the market diagram for __________ and make sure that the diagram is completely labeled.

Market: ________ Market

Price: Price per ________________

Quantity: _____________ per __________

Start the market at a market price of $_________ per ___________ and ________________ per ___________. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a)

(b)

1. WRITE your OWN QUESTION NUMBER 2 (and write the answer).

Consider the market for ________________ .Draw the market diagram for __________ and make sure that the diagram is completely labeled.

Market: ________ Market

Price: Price per ________________

Quantity: _____________ per __________

Start the market at a market price of $_________ per ___________ and ________________ per ___________. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a)

(b)