MICROECONOMICS:

Papers:

Papers that are submitted by the due date can be rewritten as many times as necessary until the student is satisfied with the grade received. Students are warned that these papers, worth 10 points, can only receive scores of 0, 3, or 10. In other words, students receive either an F or an A. Therefore it is important to finish the papers by the due date so that they can be rewritten.

General Instructions

ALL PAPERS MUST:

• be typed
• be double spaced
• include paper title and number
• include student's name and CLASS MEETING TIME
• have no cover page or plastic covers, etc.
• be stapled in the upper left-hand corner
• if they include graphs, graphs must be discussed IN THE PAPER
• you must tell the reader when to refer to the graph
• papers that are rewritten must be handed in with ALL previous drafts stapled together.

Paper 1: the 5 E's (Ch 1)

Define the "5 Es" and relate each definition to the concept of SCARCITY and the goal of MAXIMIZING SATISFACTION. Explain by using realistic examples of how economic growth, allocative inefficiency, productive inefficiency, inequity, and unemployment affect scarcity. Please keep the paper as short as possible.

This paper is based on information from class lectures and from http://www.harpercollege.edu/mhealy/eco211/lectures/intro/5es.htm. Be sure to read and study this before writing your paper.

Paper 2: Supply and Demand (Ch. 3)

SAMPLE ARTICLE:
http://cnn.com/US/9907/27/gas.prices/
http://cnn.com/US/9908/09/rv.boom/

Find a newspaper article on an INDIVIDUAL PRODUCT whose PRICE and QUANTITY SOLD has changed. Your analysis should indicate why the price and/or quantity has changed by noting which non-price determinates of demand or supply have changed. The article must mention at least TWO non-price determinates that have changed. If the article mentions more, then you must discuss them in your paper as well. Use supply and demand graphs to show changes in the equilibrium price and/or quantity. Clearly state what happened to the non-price determinates, what happened to supply and demand, and what happened to the price and quantity sold of the product as a result.

Paper 3: Elasticity

Discuss the (1) price elasticity of demand and (2) the price elasticity of supply for the product in your article from paper 2. Explain whether you think the market demand is prince elastic or price inelastic and justify your answer by discussing all the determinants of price elasticity of demand. Do the same thing for the price elasticity of supply.. Finally (3) discuss why it is important to know the price elasticity of demand. What happens to total revenues if the price changes.?

Paper 4: Product Markets and Efficiency (Ch. 10 or 11 or 12)

Use your newspaper article from paper 2, or find a new, similar, article and decide which product market model (pure competition, monopoly. monopolistic competition, or oligopoly) best applies to the product in your article. Then follow the instructions below for the appropriate model.

PURELY COMPETITIVE PRODUCT MARKET: Discuss the allocative and productive efficiency of purely competitive product markets. Include a graph showing a purely competitive firm in long run equilibrium with the profit maximizing level of output, the allocatively efficient level of output, and the productively efficient level of output clearly labeled. Also discuss MARGINAL COST PRICING and allocative efficiency giving examples of allocative inefficiency.

MONOPOLISTIC PRODUCT MARKET: Discuss the allocative and productive efficiency of monopolistic markets. Include a graph showing a monopolistic firm in long run equilibrium with the profit maximizing level of output, the allocatively efficient level of output, and the productively efficient level of output clearly labeled. Also discuss RATE REGULATION of natural monopolies. Again using a graph with the profit maximizing level of output, the allocatively efficient level of output, and the productively efficient level of output clearly labeled.

MONOPOLISTICALLY COMPETITIVE PRODUCT MARKET: Explain why this product market model applies to the product in your article by discussing the characteristics. Discuss the allocative and productive efficiency of monopolistically competitive industries. Include a graph showing the firms in long run equilibrium with the profit maximizing level of output, the allocatively efficient level of output, and the productively efficient level of output clearly labeled.

OLIGOPOLISTIC PRODUCT MARKET: Explain why this product market model applies to the product in your article by discussing the characteristics. Discuss the allocative and productive efficiency of oligopolistic industries. Decide which oligopoly pricing model most likely applies to the product in your article and include a graph showing a firm in long run equilibrium with the profit maximizing level of output, the allocatively efficient level of output, and the productively efficient level of output clearly labeled.