Jeopardy

Supply and demand303

The FED

Chapter 5Supply/Demand

101

CPI and Inflation

Supply/Demand202

Q $100

Q $200

Q $300

Q $400

Q $500

Q $100 Q $100Q $100 Q $100

Q $200 Q $200 Q $200 Q $200

Q $300 Q $300 Q $300 Q $300

Q $400 Q $400 Q $400 Q $400

Q $500 Q $500 Q $500 Q $500

Final Jeopardy

$100 Question from Supply and demand 303

Provide an example of Substitute GoodsOther that the example I have used in class

$100 Answer from CH3

Nike ShoesAdidas Shoes How does the price of One effect the demandOf the other?

$200 Question from Ch 3

Provide and Example of Complementary Goods

$200 Answer from CH 3

Two goods that go togetherPB and J

How does the price of One effect the demandOf the other?

$300 Question from CH 3

Explain why a shortage is bad for business

$300 Answer from CH 3

Customers will go Somewhere elseLost sales

$400 Question from Ch 3 Assume that the economy of the country of Alpha is experiencing increasing unemployment. Steak is considered a normal good in Alpha. Explain what the impact of the increasing unemployment on the market for steak in Alpha.

$400 Answer from Ch 3

Demand for stake would go down

$500 Question from CH3

Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the price and quantity of cream.

$500 Answer from Ch 3

Demand for cream would Shift down

$100 Question from The FED

Provide one of the three goals of theFED discussed in class?

$100 Answer from Motivation The FED

1. Price Stability 2. Full Employment 3. Economic Growth

$200 Question from The FED

This is what we call the interest rate the FED Charges banks to borrow money

$200 Answer from The FED

Discount Rate

$300 Question from The FED

What would the fed do to the reserve requirement under a tight monetary policy.

$300 Answer from The FED

Under a tight monetary policy the FED would raise the reserve requirement

$400 Question from The FED

If the fed was buying bonds would this Be a easy or tight policy?

$400 Answer from The FEDIf The fed was buying bondsThey would be under a easy policy Because they would be adding to the Money supply

$500 Question from The FED

Given a 20% inflation rate what type of Monetary policy would they enact?And what might the do with one of their tools

$500 Answer from The FED

Tight Discount Rate = UpReserve requirement= UpSell Bonds

$100 Question from Supply and Demand/ Ch 5

What causes a move along the supply or demand curve?

$100 Answer from Supply and Demand/ Ch 5

A change in price

$200 Question from Supply and Demand/ Ch 5

When looking at demand sideWhat is the relationship betweenPrice and quantity

$200 Answer from Supply and Demand/ Ch 5

The lower the price the higher the demand

$300 Question from Supply and Demand/ Ch 5

When looking at Supply Side what is the relationship between price and quantity supplied

$300 Answer from Supply and Demand/ Ch 5The higher the price the more sellers are willing to supply due to profit opportunity

$400 Question from Supply and Demand

Provide an example that would lead to An increase in demand of Oranges.

$400 Answer from Supply and Demand/ Ch 5

Medical Study is released that proves oranges have amazing healing powers.

$500 Question from Supply and Demand/ Ch 5

What would cause a decrease in quantity supplied of oranges

$500 Answer from Supply and Demand/ Ch 5

A Change In Price

$100 Question from CPI and Inflation Rate

What does CPI stand for?

$100 Answer from CPI and Inflation Rate

Consumer Price Index

$200 Question from CPI and Inflation Rate

Define Consumer Price Index

$200 Answer from CPI and Inflation Rate

A basket of goods and services Used to track changes in prices

$300 Question from CPI and Inflation Rate

What is the ideal inflation rateAccording to the FED

$300 Answer from CPI and Inflation Rate

2%

$400 Question from CPI and Inflation Rate

In the equation below what doesThe F and I stand for?

$400 Answer from CPI and Inflation Rate

F = Final CPI NumberI = initial CPI Number

$500 Question from CPI and Inflation Rate

What could cause hyper inflation?

$500 Answer CPI and Inflation Rate

1. The Government starts printing money2. The Circle of minimum wages going up And prices are increase to pay wages, then Workers ask for another raise due to the Rise in prices and so on…..

$100 Question from Supply/Demand202

Define Equilibrium price

$100 Answer Supply/Demand202

Where supply = Demand

$200 Question Supply/Demand202

If supply is grater than demandYou have this??

$200 Answer Supply/Demand202

Surplus

$300 Question from Supply/Demand202

If demand is grater that supplyYou have this?

$300 Answer Supply/Demand202

Shortage

$400 Question from Supply/Demand202

What does is mean if a product Has inelastic demand

$400 Answer from Supply/Demand202

A change in price does not effectThe demand as much

$500 Question from Supply/Demand202

Provide an example of a productWith elastic demand and justify your Answer.

$500 Answer from Supply/Demand202

Luxury goods, Wants, Entertainment

Final JeopardyCalculate the inflation rate for GAS

2002= Price $2.522003 = Price $4.52Based on the inflation rate what Might the fed do using one of their tools

Final Jeopardy Answer

44%Raise Discount RateRaise Requirement Buy Bonds