Economics 211 Graphing Exercise 2 Coats

In the blank before each market, you are to write several letters or symbols, each separated by a dash mark. First, mark the letter of factor that effects the market from the list below:

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

Second, mark WTP or MC or both to show whether the event changed Willingness to Pay (WTP) or Marginal Cost (MC).

Third, place a plus sign (+) above the WTP or MC if you think the event will cause WTP or MC to rise or place a negative sign (-) above

the WTP or MC if you think that the event will cause WTP or MC to fall.

Finally, look at graphs A-E (after item 34 below). To the left of each item number (1-34 below), write in the letter of the graph that best describes the situation in the market brought about by the event.

Market:	Event:
+
B 1. b—WTP Beef	Pork prices rise
2._______Newsprint	Wood pulp prices fall
3._______Beef	Potato prices fall
4._______Gasoline	Diesel prices rise
5._______Caribbean Cruises	Incomes rise
6._______Automobiles	Auto factories become more automated—advances in robotics
7._______Dried beans	Incomes fall
8._______Photocopiers	Xerox’s patents expire
9._______Cigarettes	News of tobacco’s health effects spreads around the globe
10.______Broccoli	Broccoli prices fall
11.______Fresh fish	Coastal populations (of people) decline
12.______Rice	Potato prices rise
13.______Clothing	Seamstress wages fall
14.______Draft beer	Peanut prices (at the bar) rise
15.______Petroleum Jelly	Gasoline prices fall
16.______Women’s shoes	Incomes fall
17.______Crude oil	3D seismology methods make locating oil more a sure thing
18.______Used clothing	Incomes fall
19.______Lawyers	Easier to get into and pass law school and bar exam
20.______Oat bran	Nabisco advertises that oat bran cuts cholesterol
21.______Orange juice	Orange juice prices fall
22.______Apartments by military base	Military personnel from base deployed for extended time
23.______Coca Cola	Pepsi prices fall
24.______Gasoline	Crude oil prices fall
25.______CDs	CD player prices fall
26.______Crawfish	Rice prices increase
27.______Tobacco	Sweet corn prices rise (corn grows on same type of land as tobacco)
28.______DVD cameras	Incomes rise
29.______Computers	Processor chip prices fall
30.______Shoe repair services	Incomes fall
31.______Leather	Beef prices rise
32.______Air travel	Jet liner prices drop
33.______Art works	Incomes fall
34.______Beef	Oprah’s mad cow disease program airs