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west of the Mississippi River

#1: Choose 2 cities west of the Mississippi River, and research the housing prices for a condo in each city with 3 bedrooms and 2 bathrooms. Determine how supply and demand can affect the prices of these homes.  highlight economic factors in that area that may influence your decision or factors that make it unlikely that you would choose an area.

 

#2: Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:

Compute the price elasticity of demand for paint and show your calculations.

Decide whether the demand for paint is elastic, unitary elastic, or inelastic.

Explain your reasoning and interpret your results.

 

#3: How would you describe the main differences between microeconomics and macroeconomics? What example would you provide for each phenomenon? Describe a microeconomic decision you made and the factors that contributed to your decision as well as a specific macroeconomic phenomenon or event and how it has impacted you personally.

 

#4: During recent political campaigns, taxes and budget policy were key issues. White House budget packages are often designed to stimulate economic growth. From the library or from the White House Web site, obtain a current summary of government spending and tax legislation that was signed by the president. After reviewing this information, how would you describe the fiscal policy of the United States? Would you describe it as expansionary or contractionary? How can American consumers influence decision makers on fiscal policies?

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