ECON 101 Chapter 3: Demand & Supply

C) (4 points) You own a small town movie theatre. You currently charge $5 per ticket for everyone who comes to your movies. Your friend who took an economics course in college tells you that there may be a way to increase your total revenue. Given the demand curves shown, answer the following questions. 101 Price 11 Price Adult Demand ....... Child Demand d) (1 point) Given the graphs and what your friend knows about economics, he recommends you increase the price of adult tickets to $8 each and lower the price of a child's ticket to $3. Should you take his advice? Explain

Make sure you first review and understand all of the "shift factors" for the supply and demand curves in your textbook. I would have a list of these by my side as you read the article titled, "The Oil Conundrum." The later part of the article discusses some of the topics we will be learning about later this semester. You may also use the sort article, "Why Is Gas Still So Expensive in California?" Use both articles to identify how events discussed in the article are affecting supply AND demand for oil. Find three events that likely caused supply shifts and three events that likely caused demand for oil to shift. You will need to answer the following six times, three for demand and three for supply:

a. Event - Quote the article

b. Which determinant (shift factors), as discussed in chapter 3, are causing the supply or demand curve to shift given the event quoted?

c. Which direction will the curve shift.

d. Given the shift, what will happen to price, will it increase or decrease?

e. Given the shift, what will happen to quantity, will it increase or decrease?

Note that the terms IMF and GDP are the International Monetary Fund and Gross Domestic Product. The IMF is an international economic stability organization. GDP is a measure for the size of a country's economy.

Here's a hint where to find some examples in "The Oil Conundrum" article:

1st page, 1st and 2nd paragraph - Supply

2nd page, 4th paragraph - Supply

3rd page, 5th paragraph - Supply

4th page, 4th paragraph - Demand

6th page, 3rd paragraph - Demand

6th page, 4th paragraph - Demand

XYZ Company is aware that both macroeconomics and microeconomics play a general role in its organization’s success. Top-level management has asked you to conduct research, and then write a report on specifically what role it should play in its overall success. Management has asked for information on the following as it relates to the organization: Elasticity, consumer choice, productions and costs, supply and demand, aggregate supply and aggregate demand, and macroeconomic measurements.

Length: 3-5 pages, not including title page and references. Please use the concepts from the Peregrine Modules as well as three additional scholarly sources for support throughout your presentation. Additional reliable sources may also be used.