Students will answer each critical thinking questions with a minimum of 200 words.
Critical Thinking Questions:
Explain why the following statement is false: “In
the goods market, no buyer would be willing to pay
more than the equilibrium price.”
2. Explain why the following statement is false: “In
the goods market, no seller would be willing to sell for
less than the equilibrium price.”
3. Consider the demand for hamburgers. If the price
of a substitute good (for example, hot dogs) increases
and the price of a complement good (for example,
hamburger buns) increases, can you tell for sure what
will happen to the demand for hamburgers? Why or why
not? Illustrate your answer with a graph.
4. How do you suppose the demographics of an aging
population of “Baby Boomers” in the United States will
affect the demand for milk? Justify your answer.
5. Other than the demand for labor, what would be
another example of a “derived demand?”