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Supply Demand Questions

  1. What are the demand and supply, and what factors influence them. Include all factors and write on 3.

    • Demand: It represents the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.
    • Supply: It represents the quantity of a product or service that producers are willing and able to provide at various prices during a given time period.
    • Factors Influencing Demand and Supply:
      • Market Demand: This refers to the total demand for a product or service in a specific market. In the context given, the market demand relates to the number of tacos desired by all consumers in the market.
      • Supplied Amount of Taco: This represents the number of tacos that producers are willing to produce and offer for sale at different prices.
    • Examples
      • Change in Demand: A shift in the demand curve caused by factors other than price. Examples include:
      • Changes in Income: An increase in consumers' income will often lead to an increase in demand for normal goods.
      • Changes in Number of Consumers: An increase in the number of consumers in the market can lead to an increase in demand.
      • Other factors not specified but could include tastes and preferences, prices of related goods, expectations, etc.

  2. p. 80- What are the plot points telling you?

    The plot points suggest a negative relationship between the price of tacos and the quantity demanded. As the price of tacos decreases, the quantity demanded increases, implying a downward sloping demand curve.

  3. p. 84 what are points telling you?

    The plot points suggest a positive relationship between the quantity of tacos supplied and their price. As the quantity of tacos increases, their price rises, indicating an upward sloping supply curve.

  4. p. 85 what are the points telling you?

    The points describe various factors that can cause a shift in the market supply. Shifters can either increase or decrease market supply.

  5. p. 88-89 calculate the demand elasticity. Use example and then plot your own

    Demand Elasticity Calculation:

    Demand Elasticity \(= 1.6\).

    This indicates that for a \(1\%\) change in the price of tacos, the quantity demanded changes by \(1.6\%\). The demand is elastic since the value is greater than \(1\).

  6. p.92-93 calculate the supply elasticity. Use example then plot your own

    Supply Elasticity Calculation:

    Supply Elasticity \(= 3\).

    This suggests that for a \(1\%\) change in the price of tacos, the quantity supplied changes by \(3\%\). The supply is highly elastic.

  7. Read page 96 answer questions then determine if Can you change the world?

    The collective efforts of individuals can influence the market, leading to positive or negative outcomes. Thus, by uniting and working towards a common goal, it's possible to bring about meaningful changes in the world.