Economics of Enterprise Answers

The current performance of the South African economy shows that

Think Critically 

Suppose that you are a writer for the blog All Things Chocolate and are 

writing a post that illustrates how principles from your economics class can 

be illustrated by the market for chocolate candy bars. You want to include 

some headlines from recent news stories. Find actual news articles using 

chocolate to illustrate each of the following concepts, or if none are available, 

create your own detailed headlines. You may draw a graph to illustrate the 

changes in equilibrium.

1. Change in quantity demanded 

2. Change in quantity supplied 

3. Change in number of buyers of chocolate bars

Suppose you are a stock market analyst specialising in the stocks of theme parks, and you are examining Disneyland’s stocks. The Wall Street Journal reports that tourism has slowed down in the United States. At Six Flags Magic Mountain in Valencia, California, a new Viper roller coaster is now operating and another new ride, Psyclone, will be opening this year. 

Using demand and supply analysis, predict the impact of these events on ticket prices and attendance at Disneyland. As reported in The Wall Street Journal, Disneyland slashed ticket prices and admitted that attendance was somewhat lower. 

Is this consistent with your prediction using demand and supply analysis? 

In light of the fact that both price and output were falling at Disneyland, is the law of demand being violated in the world of fantasy?

1. Outline Recent Developments in global trade negotiations

Suppose the consumer solves the following UMP: max (x1)^2 + (x2)^2 , s.t. p1x1 + p2x2 ≤ w where p1,p2 > 0. a) Plot the indifference curves b) Find the Marshallian demand functions. Show graphically the utility maximizing choices.

If a binding price ceiling is lifted, what will happen to the price and quantity traded in the market.

Select one:

a. The price and the quantity traded will both decrease.

b. The price will change but the quantity traded will remain unchanged.

c. The price will increase and the quantity traded will decrease.

d. The price will decrease and the quantity traded will increase.

e. The price and the quantity traded will both increase.