Economics

Title Assignment
Assignment type Other types
Discipline Economics
Description Explain the law of demand. Why does a demand curve slope downward? How is a market demand curve derived from individual demand curves? What are the determinants of demand? What happens to the demand curve when any of these determinants changes? Explain the law of supply. Why does the supply curve slope upward? How is the market supply curve derived from the supply curves of individual producers? What are the determinants of supply? What happens to the supply curve when any of these determinants changes? What are the major determinants of price elasticity of demand? Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic: (a) bottled water; (b) toothpaste; (c) Crest toothpaste; (d) ketchup; (e) diamond bracelets; Microsoft Windows operating system. What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space? What impact might this in turn have on room rates?