Macroeconomics Quiz 2 - Supply and Demand (continued)

EC208 Intro to Macroeconomics – Quiz 2

Professor Matt Festa

Due in class: Tuesday Sep 25th.

1) Draw the supply and demand graph for cement. Developing countries have been growing extremely fast for the past 5 years and the government are now required to improve the roads and infrastructure in the countries. Show any shifts in the supply and/or demand curve for the cement market and tell me the effect on price and quantity. (2 points)

2) Draw the supply and demand graph for bagels. A recent study by weight watchers has shown that one slice of pizza is about 10-12 points on the point scale. Given that the average weight watchers client can only consumer 20-25 points a day, this means that 1 slice of pizza is about half the allotted food a client can eat the entire day. Before this study, consumers assumed that the points were about half the new estimate (around 5). Show any shifts in the supply and/or demand curve for the pizza market and tell me the effect on price and quantity. (2 points)

3) Draw the supply and demand curve for the crude oil market. A recent hurricane hit the southeastern part of the United States. Unfortunately for the oil industry, most of the countries oil refineries are located right along this area. Most of them have been destroyed and now much less oil can be processed for consumption. Show any shifts in the supply and/or demand curve for the crude oil market and tell me the effect on price and quantity. (2 points)

4) Draw the supply and demand for nursing care. Over the past few years the average age of the population increased from 40 to 45 years (meaning there are now more older people in the population. Show any shifts in the supply and/or demand curve for nursing care. What will be the effect on price and quantify of this change in the population composition? (2 points).

5) Draw the supply and demand curve for Ford. Ford develops a new technology that allows for cars to be manufactured quicker and cheaper. In addition, the news reports have been praising the new Fusion car for its fuel efficiency and hot style. Show any shifts in supply and/or demand. What will be the effect on price and quantity of this new information? (2 points).