The answers to the graphing exercise.

 

The market factors:

 

 

 

 

 

a. price of good itself

 

g. number of buyers

b. price of substitutes (in use)

 

h. price of inputs

c. price of complements (in use)

 

i. price of substitutes (in production)

d. income (normal good)

 

j. price of by-products

e. income (inferior good)

 

k. technology

f. consumer knowledge

 

l. number of sellers

 

 

The answers.

 

 

 

Market:

 

Event:

+

 

 

1. b-B  Beef

 

Pork prices rise

2. h-D Newsprint

 

Wood pulp prices fall

3. c-B Beef

 

Potato prices fall

4. j-D or b-B Gasoline

 

Diesel prices rise

5. d-B Caribbean Cruises

 

Incomes rise

6. k-D Automobiles

 

Auto factories become more automated-advances un robotics

7. e-B Dried beans

 

Incomes fall

8. i-D Photocopiers

 

Xerox's patents expire

9. f-C Cigarettes

 

News of tobacco's health effects spreads around the globe

10. a-A Broccoli

 

Broccoli prices fall

11. g-C Fresh fish

 

Coastal populations (of people) decline

12. b-B Rice

 

Potato prices rise

13. h-D Clothing

 

Seamstress wages fall

14. c-C Draft beer

 

Peanut prices (at the bar) rise

15. j-E Petroleum Jelly

 

Gasoline prices fall

16. d-C Women's shoes

 

Incomes fall

17. k-D  Crude oil

 

3D seismology methods make locating oil more a sure thing

18. e-B Used clothing

 

Incomes fall

19.i-D Lawyers

 

Easier to get into and pass law school and bar exam

20. f-B Oat bran

 

Nabisco advertises that oat bran cuts cholesterol

21. a-A Orange juice

 

Orange juice prices fall

22. g-C Apartments by military base

 

Military personnel from base deployed for extended time

23. b-C Coca Cola

 

Pepsi prices fall

24. h-D Gasoline

 

Crude oil prices fall

25. c-B CDs

 

CD player prices fall

26. c-C or j-D Crawfish

 

Rice prices increase

27. i-E  Tobacco

 

Sweet corn prices rise (corn grows on same type of land

28. d-B  VCR cameras

 

Incomes rise

29. h-D  Computers

 

Processor chip prices fall

30. e-B  Shoe repair services

 

Incomes fall

31. j-D  Leather

 

Beef prices rise

32. h-D  Air travel

 

Jet liner prices drop

33. d-C  Art works

 

Incomes fall

34. f-C   Beef

 

Oprah's mad cow disease program airs