Economics 251/252,
Homework Chapter 3, Fall 2003
(1) Which
diagram above would correspond to the following events and why?
(a) The
market for Sport Utility vehicles if adverse consumer information is released
by the government, on rollover incidents.
______
Why _____________________________________________________
(b) The
market for automobiles if the cost of electricity in the production of
automobiles goes up.
_____
Why ______________________________________________________
(c) The
market for portable electrical generators after a power blackout. ____
Why ______________________________________________________
(d) The
market for motor freight (trucking), after the cost of gasoline and diesel fuel
goes up. _______
Why ______________________________________________________
(e) The
market for VCRs after the introduction of similar-priced DVD players.. ______
Why ______________________________________________________
(2) Find a news article in the media related to
supply or demand change, make
a copy and attach it, and explain what is happening in the marketplace
in terms of the diagrams above.