http://www3.gmu.edu/departments/economics/bcaplan
Econ 103
Spring, 2000
HW#2 (Please TYPE all answers).
Gwartney and Stroup:
Chapter 2
Critical Analysis: 2, 7, 9 (2-3 sentences)
Chapter 3
Critical Analysis: 1, 2 (2-3 sentences)
Problems: 1
Chapter 4
Critical Analysis: 1, 4, 8 (2-3 sentences)
Problems: 3
Additional Problems
Using supply and demand curves, draw diagrams to represent each of the following events.
1. How the creation of the internet affected the market for computer programmers.
2. How the LA earthquake affected the market for concrete.
3. How a drought in Columbia affects the market for coffee in the U.S.
4. How the repeal of import quotas (which limit the number of cars Japanese manufacturers can sell in the U.S.) on Japanese cars affects the market for suburban housing.
5. Medical researchers find that computer monitors cause cancer. How does this affect the market for computers? (Hint: Think of all the people who use computers).