Chapter+6

6.1 pg 131 #1-7


 * 1) What makes equilibrium so special is that its the point in where price and quantity are at a perfect balance.
 * 2) One situation where excess demand occurs is when quantity demanded is more than quantity suppplied.
 * 3) Price floor is the minimum price for a good while price ceiling is the maximum price that can be legally charged for a good.
 * 4) Rent control works in a way that it will increase the demand for apartments by lowering the prices or vice versa.
 * 5) A) Sales and office. B) Management and profesional. C) Unemployment.
 * 6) It can on one hand help a product and help promote sales or it can do the opposite and in turn make the product be a failure.
 * 7) A Equilibrium Point B Disequilibrium Point C Supply curve D Price Floor E Price Ceiling F Demand Curve

6.2 #1-5 on pg. 137
 * 1) When quantity supplied exceeds quantity demanded at a given price.
 * 2) An example of a search cost is driving to different stores and calling different towns to find and available doll.
 * 3) A) The equilibrium price will go down because of the change in demand. B) The Equilibium price will fall because of the excess supply. C) The equilibrium price will go up because of limited supply and higher demand.
 * 4) They must then have to raise the price of the good when they sell it in order to reach the breakeven point.
 * 5) A) Increased B) 20 and 150. C) 25 and 180. D) It will curve to the left and prices will go up. E) Price: 30 & 210

6.3 ReadAnswer Questions #1-4 on pg. 144
 * 1) A supply shock changes the equilibrium price because now the supply is limited and quantity is down as well.
 * 2) <span style="color: #800080; font-family: Verdana,Geneva,sans-serif;">Rationing is diffrent from a price based market because its means to divide up the goods and services and it is very expensive. It takes what we have and instead of raising prices it just divides up the products.
 * 3) <span style="color: #800080; font-family: Verdana,Geneva,sans-serif;">lexibility, "free", and we can use prices as an incentive.
 * 4) <span style="color: #800080; font-family: Verdana,Geneva,sans-serif;">Where a 2 for 1 sale occurs on the is like Payless BOGO