Authors libby rittenberg 226

the wage freeze an example of a price floor or a price ceiling? Use the model of demand and supply to explain why employers began to offer such benefits to their employees The text argues that political instability in potential suppliers of oil such as Iraq and Venezuela accounts for a relatively steep supply curve for crude oil such as the one shown in Figure 4.2 "The Increasing Demand for Crude Oil" Suppose that this instability eases considerably and that the world supply curve for crude oil becomes much flatter Draw such a curve, and explain its implications for the world economy and for typical consumers Suppose that technological change affects the dairy industry in the same way it has affected the computer industry However, suppose that dairy price supports remain in place How would this affect government spending on the dairy program? Use the model of demand and supply to support your answer People often argue that there is a “shortage” of child care Using the model of demand and supply, evaluate whether this argument is likely to be correct “During most of the past 50 years the United States has had a surplus of farmers, and this has been the root of the farm problem.” Comment Suppose the Department of Agriculture ordered all farmers to reduce the acreage they plant by 10% Would you expect a 10% reduction in food production? Why or why not? The text argues that the increase in gasoline prices had a particularly strong impact on low-income people Name some other goods and services for which a sharp increase in price would have a similar impact on people with low incomes Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 226