MBA Economic Analysis for Managers

Take Home

Supply and Demand Quiz

1.Cell Phone Market (Make sure to include a graph and the assumptions you are making to support your answer for each question.) (40 points)

A.As the Iphone grows in popularity, what happens to the price and quantity of Iphones? (10 Points)

B.As consumers expect the new Iphone to come out, what happens to price and quantity of the current Iphone model? (10 Points)

C.As more Apple Apps that can only be used only for the Iphone get cheaper, what happens to the price and quantity of Iphones? (10 Points)

D.If Apple parts coming from China cost more money, what happens to the price and quantity of Iphones?(10 Points)

2.The Clothing Market. (Make sure to include a graph and the assumptions you are making to support your answer for each question.) (40 points)

A.As income falls, what happens to the price and quantity of cloths? (10 points)

B.As the cost of leather falls, what happens to the price and quantity of leather jackets? (10 Points)

C.As the price of Nike's increases, what happens to the price and quantity of Reebok?(10 Points)

D.If we impose a tax on cloths, what happens to the price and quantity of cloths? (10 Points)

3.Recently California choose to increase their minimum wage, who are the winners and losers? Why? Make sure to draw a graph to support your answer. What is an alternative solution? (15 Points)

4.What is your opportunity cost of Medicare for all? (5 Points)