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