Demand and Supply Exercises

Directions: Fill in the boxes (QD, QS, D, S, P, Q) in the next three demand and supply exercises. Based upon the event, what can we expect to occur for the market? Use a “0” (zero) if nothing will occur for that particular variable, a “+” (plus) if an increase, or a “-“ (negative) if a reduction. QD stands for Quantity Demanded, QS for Quantity Supplied, D for Demand, S for Supply, P for Price, and Q for Quantity.

Click here for the editable version of this assignment.

W2 Qiz

The Importance of Competition

After reading chapters 5 and 6 and Special Topic 5, write a 2-page paper describing the importance of competition in markets.  How does a lack of competition affect prices and output?  Describe what the role of government is in markets vis-a-vis firms in the market.