033 Group 4

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New York University *

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Course

01

Subject

Economics

Date

Jan 9, 2024

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pdf

Pages

10

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ECON±UA ² Week ³ recitation Your names" Teresa Martinez±Laredo´ Samantha Young´ Scarlet Zhan´ Dominic Cappuccino´ KevinµYue¶ Hu´ Medhya Ravishankar´ Kiha Ahn If your name here differs from your name on Brightspace´ please notify the grader using the comment box on Brightspace·
Part °: Keyword review Instruction: Write down economics terms that correspond to each of the following sentences± When the quantity demanded is greater than the quantity supplied´ we have shortage in the market· The price will rise · When the quantity demanded is equal to the quantity supplied´ the market is in equilibrium· When the quantity demanded is less than the quantity supplied´ we have surplus in the market· The price will fall · Price elasticity of demand is equal to the percentage change in quantity demanded divided by the percentage change in price ·
Part °: Keyword review ²cont±³ When the price elasticity of demand is zero´ we say that the demand is perfectly inelastic · When the price elasticity of demand is less than ²´ we say that the demand is inelastic· When the price elasticity of demand is equal to ²´ we say that the demand is unit elastic · When the price elasticity of demand is greater than ²´ we say that the demand is elastic · When the price elasticity of demand is infinity´ we say that the demand is perfectly elastic demand · If the good has no close substitutes available´ the elasticity of demand is less elastic· If the good is a necessity´ the elasticity of demand is inelastic · If the scope of the market is large´ the elasticity of demand is less elastic · If the time horizon is long´ the elasticity of demand is more elastic ·
Part ´: News analysis Read the newspaper article below about panic buying during the pandemic and answer the following questions· https"¸¸www·bbc·com¸news¸world±australia±¹²º»²³¼¼ What happens to the demand and supply of toilet paper" Draw a graph and explain· What drives the change you observed in the previous question" Clearly explain your answer· What happens to the equilibrium price and quantity of toilet paper" How would you describe the elasticity of demand of toilet paper" Justify your answer·
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