jeopardy simultaneous ceilingsfloorselasticity miscellaneous q $100 q $200 q $300 q $400 q $500 q...

JeopardySimultaneous Ceilings Floors Elasticity Miscellaneous

Q $100

Q $200

Q $300

Q $400

Q $500

Q $100 Q $100Q $100 Q $100

Q $200 Q $200 Q $200 Q $200

Q $300 Q $300 Q $300 Q $300

Q $400 Q $400 Q $400 Q $400

Q $500 Q $500 Q $500 Q $500

Final Jeopardy

$100 Question Simultaneous

There are four possible combinationsthat can occur when supply and demandshift simultaneously. List them.

$100 Answer Simultaneous

Demand increases, supply increases.Demand decreases, supply decreases.Demand increases, supply decreases.Demand decreases, supply increases.

$200 Question Simultaneous

There are three possible results that can occur for both price and quantity demanded when supply and demand change simultaneously. List them.

$200 Answer Simultaneous

Increase, decrease, indeterminate.

$300 Question Simultaneous

If an increase in demand and increase in supply occurs simultaneously, what affect will this have on the eventual equilibrium price and quantity demanded?

$300 Answer Simultaneous

Equilibrium Price IndeterminateEquilibrium Quantity Increases

$400 Question Simultaneous

For a normal product, there has been an increase in the price of a substitute product along with a decrease in the price of resources. What affect will these changes have on the eventual equilibrium price and quantity demanded?

$400 Answer Simultaneous

Equilibrium Price IndeterminateEquilibrium Quantity Increases

$500 Question Simultaneous

For an inferior product, there has been an increase consumer’s income as well as there is an expected future increase in the market price of the product. What affect will these changes have on the eventual equilibrium price and quantity demanded?

$500 Answer Simultaneous

Equilibrium Price IndeterminateEquilibrium Quantity Decreases

$100 Question Ceilings

Define the term price ceiling.

$100 Answer Ceilings

A price ceiling is a government mandated maximum price at which a product can be sold legally.

$200 Question Ceilings

When a price ceiling is introduced, what occurs in the market and what type of market develops as a result?

$200 Answer Ceilings

A shortage occurs. A black market develops.

$300 Question Ceilings

List the 4 methods of allocation for products to deal with a shortage.

$300 Answer Ceilings

1. The market2. First come, first served3. Producer’s preference 4. Rationing

$400 Question Ceilings

Identify two key reasons why rent control can lead to low vacancy rates.

$400 Answer Ceilings

1. Landlords are less likely to offer property at the low rental rate.

2. More people move to the area due to the low rental rates.

$500 Question Ceilings

Describe how rent control allows landlords to discriminate.

$500 Answer Ceilings

Due to the shortage of housing, there are many buyers to choose between. Landlords are able to pick and choose between tenants based on non-economic factors because they must all be charged the same rental rate.

$100 Question Floors

Define the term price floor.

$100 Answer Floors

A price floor is a government mandated minimum price at which a product can legally be sold.

$200 Question Floors

What occurs in the market as a result of a price floor? What does this represent in relation to employment?

$200 Answer Floors

A surplus occurs in the market. Unemployment.

$300 Question Floors

List the 5 methods of dealing with a surplus.

$300 Answer Floors

1. Store it. 2. Convert it. 3. Sell it abroad. (Dump it) 4. Donate it. 5. Destroy it.

$400 Question Floors

Identify the two ways that teenagers are harmed by the minimum wage.

$400 Answer Floors

1. They lose their jobs immediately and lose income as a result.

2. They have trouble finding another job and as a result cannot gain experience or work skills.

$500 Question Floors

Describe how the minimum wage allows employers to discriminate.

$500 Answer Floors

There is a surplus of employees, and therefore many applicants for employment positions. Employers must pay all applicants the same wage, and therefore can pick and choose based on non-economic factors.

$100 Question Elasticity

Calculate the total revenue for the following product:

Quantity of 50 sold @ $40 each.

$100 Answer Elasticity

Total Revenue = Price x QuantityTotal Revenue = $40 x 50 Total Revenue = $2000

$200 Question Elasticity

Define the term price elasticity of demand.

$200 Answer Elasticity

The responsiveness of quantity demanded to a change in price.

$300 Question Elasticity

List three determinants of elasticity.

$300 Answer Elasticity

1. The length of time since the price change.

2. The # and closeness of substitutes.

3. The % of income the product represents.

4. The necessity of, or addiction for, the product.

$400 Question Elasticity

Identify the following as inelastic or elastic demand:

1. Coefficient <1 2. Coefficient >13. Demand for drugs. 4. Demand for tomatoes.

$400 Answer Elasticity

1. Coefficient <1 - inelastic2. Coefficient >1 - elastic3. Demand for drugs. - inelastic4. Demand for tomatoes. - elastic

$500 Question Elasticity

Calculate the elasticity coefficient for the following product:

New Qd – 120, Old Qd – 80 New P – 60, Old P – 75

$500 Answer Elasticity

Ep = 1.8

$100 Question Miscellaneous

Fill in the following blanks:

1. If demand is inelastic and price rises, total revenue will _______.

2. If demand is _______ and price falls, total revenue will rise.

$100 Answer Miscellaneous

1. If demand is inelastic and price rises, total revenue will rise.

2. If demand is elastic and price falls, total revenue will rise.

$200 Question Miscellaneous

Categorize the following as either a price ceiling or price floor:

1. Rent control2. Minimum wage 3. Agricultural price control 4. Salary cap

$200 Answer Miscellaneous

1. Rent control - ceiling2. Minimum wage – floor 3. Agricultural price control -

floor 4. Salary cap - ceiling

$300 Question Miscellaneous

Describe how governments can ‘get away’ with charging Sin taxes on alcohol and cigarettes. Relate your answer to the elasticity of the products, and rules regarding total revenue and price.

$300 Answer Miscellaneous

Alcohol and cigarettes have inelastic demand. Sin taxes will increase the price of the product, which will lead to an increase in total revenues and increased tax revenue for the government.

$400 Question Miscellaneous

Describe how a war on drugs might increase crime rates – use the concepts or shortages/surpluses, elasticity, price, and total revenue in your answer.

$400 Answer Miscellaneous

1. War on drugs decreases supply. 2. Causes a shortage and prices

increase. 3. Inelastic demand, so as prices

increase total revenue in the market will rise.

4. To afford higher market prices, drug users turn to other crimes.

$500 Question Miscellaneous

Describe how a good harvest might be bad for farmers – use the concepts or shortages/surpluses, elasticity, price, and total revenue in your answer.

$500 Answer Miscellaneous

1. A good harvest can lead to surpluses.

2. Causes prices to decrease. 3. If the product has inelastic

demand (wheat), decreased prices lead to decreases in total revenue.

Final JeopardyThe Diamond-Water Paradox

Identify the two criteria which determine the value of a product in our society.

Final Jeopardy Answer

1. Scarcity2. Marginal Utility