The answers to the graphing exercise.
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The
market factors: |
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a. price
of good itself |
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g. number
of buyers |
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b. price
of substitutes (in use) |
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h. price
of inputs |
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c. price
of complements (in use) |
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i. price of
substitutes (in production) |
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d. income
(normal good) |
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j. price
of by-products |
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e. income
(inferior good) |
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k.
technology |
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f.
consumer knowledge |
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l. number
of sellers |
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The answers. |
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Market: |
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Event: |
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+ |
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1. b-B Beef |
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Pork
prices rise |
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2. h-D
Newsprint |
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Wood pulp
prices fall |
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3. c-B
Beef |
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Potato
prices fall |
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4. j-D or
b-B Gasoline |
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Diesel
prices rise |
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5. d-B
Caribbean Cruises |
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Incomes
rise |
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6. k-D
Automobiles |
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Auto factories
become more automated-advances un robotics |
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7. e-B
Dried beans |
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Incomes
fall |
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8. i-D
Photocopiers |
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Xerox's
patents expire |
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9. f-C
Cigarettes |
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News of
tobacco's health effects spreads around the globe |
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10. a-A
Broccoli |
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Broccoli
prices fall |
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11. g-C
Fresh fish |
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Coastal
populations (of people) decline |
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12. b-B
Rice |
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Potato
prices rise |
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13. h-D
Clothing |
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Seamstress
wages fall |
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14. c-C
Draft beer |
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Peanut
prices (at the bar) rise |
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15. j-E
Petroleum Jelly |
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Gasoline
prices fall |
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16. d-C
Women's shoes |
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Incomes
fall |
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17.
k-D Crude oil |
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3D
seismology methods make locating oil more a sure thing |
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18. e-B
Used clothing |
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Incomes
fall |
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19.i-D
Lawyers |
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Easier to
get into and pass law school and bar exam |
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20. f-B
Oat bran |
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Nabisco
advertises that oat bran cuts cholesterol |
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21. a-A
Orange juice |
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Orange
juice prices fall |
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22. g-C
Apartments by military base |
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Military personnel
from base deployed for extended time |
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23. b-C
Coca Cola |
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Pepsi
prices fall |
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24. h-D
Gasoline |
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Crude oil
prices fall |
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25. c-B
CDs |
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CD player
prices fall |
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26. c-C
or j-D Crawfish |
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Rice
prices increase |
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27.
i-E Tobacco |
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Sweet
corn prices rise (corn grows on same type of land |
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28.
d-B VCR cameras |
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Incomes
rise |
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29.
h-D Computers |
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Processor
chip prices fall |
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30.
e-B Shoe repair services |
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Incomes
fall |
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31.
j-D Leather |
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Beef
prices rise |
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32.
h-D Air travel |
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Jet liner
prices drop |
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33.
d-C Art works |
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Incomes
fall |
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34.
f-C Beef |
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Oprah's
mad cow disease program airs |