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Try to answer each of the questions on a piece of paper. When you are finished, watch the videos next to each question to get the solution. These will only be as helpful as you make them. Answer first, watch second.
Try to answer each of the questions on a piece of paper. When you are finished, watch the videos next to each question to get the solution. These will only be as helpful as you make them. Answer first, watch second.
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1
Stock in a company is an asset that can be bought and sold. Owners of stock are entitled to benefits like a share of profits. As with anything that is bought and sold, there are suppliers of the stock (those who own it and are willing to sell it at the right price) and there are buyers of the stock (those who want to purchase it if the price is right).
What happens to supply when the price of the stock increases?
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2
Coke and Pepsi are substitutes for one another. What happens to the equilibrium price and quantity for Coke if the price of Pepsi rises?
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3
Las Vegas is a popular tourist destination. However, during a recession the average income of the population declines. What happens to the equilibrium price and quantity of airfare for trips to Las Vegas?
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4
One of the costliest inputs for ride hailing services like Uber is the driver. What will happen to the equilibrium price and quantity for ride hailing services when driverless vehicles reduce the cost of providing the service?
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A large fraction of all the sugarcane grown in the U.S. is grown in Florida. Suppose that a hurricane destroys a significant number of sugarcane crops in the state. What would happen to the equilibrium price and quantity of sugar, which is made from sugarcane, as a result of this hurricane?
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6
Yev Kassem has opened a new restaurant specializing in soups and is the talk of the town. However, the number of customers Yev receives per day depends on how much he charges for a bowl of soup. Below is a table showing how many customers Yev will have when he sets a certain price for his soup.
Use this information to sketch the demand curve for soup and explain what happens when the price drops from $15 to $10 per bowl.
Module 3 Quick Quiz
Module 3 Quick Quiz
Now that you have watched all the videos and tried all of the example problems, see how you do on this short quiz. If you score under 75%, consider reaching out to your course instructor for some advice.
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