Define scarcity. Briefly explain the two markets in the circ…
Define scarcity. Briefly explain the two markets in the circular flow diagram. Draw a production possibilities frontier graph. Label an efficient, inefficient, and unattainable point. Draw a market for Nike shoes. Show the equilibrium point. Fully label the graph. A severe freeze has damaged the Florida orange crop. What is the impact on the market for orange juice? Show graphically. If the price is below the equilibrium level, then the quantity demanded will be above / below the quantity supplied. Circle the correct answer – above or below. Are markets always in equilibrium? One – two sentence answer. Suppose that Joe plays golf 5 times per month when the price is $40 and 4 times per month when the price is $50. What is the price elasticity of Joe’s demand curve? Formula: price elasticity of demand = % change in quantity / % change in price Many cooks view butter and margarine to be substitutes. If the price of butter rises, what happens in the market for margarine? Define price elasticity of supply.