[microhelp]

In 2004, oil facilities in iraq were attacked and strong economies in the United States and China boosted the demand for Oil.

a. Demonstrate graphically how these events led to oil prices in excess of $40 a barrel in June 2004. What was the effect on the equilibrium quantity of oil bought and sold?

b. As a result of political pressure, OPEC agreed to increase the daily quota by 2 million barrels a day. What was the likely effect on equilibrium oil price and quantity? Demonstrate your answer graphically.

You're a commodity trader and you've just heard a report that the winter wheat harvest will be 2.09 billion bushels, a 44 percent jump, rather that an expected 35 percent jump to 1.96 billion bushels.

A. What would you expect would happen to wheat prices?


B. Demonstrate graphically the effect you suggested in A.

In the early 2000s, the demand for housing increased substantially as low interest rates increased the number of people who could afford homes.
A. What was the likely effect of this on housing prices? Demonstrate graphically? ( How would I set this up in excel)?

B. In 2005, mortgage rates began increasing. What was the likely effect of this increase on housing prices? Demonstrate graphically.

C. In a period of increasing demand for housing, would you expect hoursing prices to rise more in Miami suburbs, which had room for expansion and fairly loose laws, about subdivisions, or in a city such as San Francisco, which had limited land and tight subdivision restrictions?

Aparments in New York are often hard to find. One of the major resons is rent control.

A. Demonstrate graphically how rent controls could make apartments hard to find.

B. Often one can get an apartment if one makes a side payment to the current tenant. Can you explain why?

C. What would be the likely effect of eliminating rent controls?

D. What is the political appeal of rent controls?

The technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road.

A. How could this technological change contribute to ending bottlenecks and rush hour congestion?

B. What are some of the problems that might develop with such a system?

C. How would your transportation habits likely change if you had to pay to use roads?

Calculate the income elasticities of demand for the following:

A. Income rises by 20 percent; demand rises by 10 percent.

B. Income rises from $30,000 to $40,000; demand increases (at a constant price) from 16 to 19.

When the price of ketchup rises by 15 percent , the demand for hot dogs falls by 1 percent.

A. Calculate the cross-price elasticity of demand.
B. Are the goods complements or substitutes?
c. By how much would the demand have to rise for the goods to switch from complements to substitutes, or vice versa?

A newspaper recently lowered its price from 50 cents to 30 cents. As it did the number of newspapers sold increased from 240,000 to 280,000.
A. What was the newspaper's elasticity of demand?
B. Given the elasticity, did it make sense for the newspaper to lower its price?
C. How would your answer change if much of the firm's revenue came from advertising and the higher the circulation, the more it could charge for advertising/

[Curlyben]

Thank you for taking the time to copy your homework to AMHD.
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[Clough]

Hi, microhelp!

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Please also read the expectations concerning the posting of homework questions to which Curlyben gave you the link.

Thanks!

[redorange85]

Supply and demand goes down