1. 25 pts(week 2 notes). A farmer is over-heard saying, "Every time I produce more and more grapes, I lose out on apples. You know, that means my costs increase." (Use an economic diagram and economic ideas to explain this comment.)

2. 20 pts(Week 3 notes). "Look at all those hand bags stacked up on the shelves in the shop.That shop owner must be pricing those handbags way too high."Explain this comment and what economists would expect to have happen and why. (For full points, use an economic diagram and economic ideas and terms to explain this comment.)

3. 20 pts(Week 4 notes). Consider the market for cut flowers. Draw the market diagram for cut flowers and make sure that the diagram is completely labeled.

Market: Cut flowers

Price: Price per bunch

Quantity: Bunches per week

Start the market at a market price of $5 per cut flower and 12,000 bunches per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Higher product taxes

(b) Population likely to buy flowers increases

4. 35 pts(week 5 and 6 notes) Consider the market for Red Leaf Lettuce. Explain the following comments using the economic diagrams, terms and ideas we are learning.

a. "No, my friend, you have it all wrong. The market is in great shape.It is producing just the right amount of red-leaf lettuce.Trust me, it is very efficient."

b."Oh, sure there is a little bit of pesticide run-off that is harming a few frogs, but that doesn't mean the market is inefficient."

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1. 25 pts(week 2 notes). A farmer is over-heard saying, "Every time I produce more and more grapes, I lose out on apples. You know, that means my costs increase." (Use an economic diagram and economic ideas to explain this comment.)

2. 20 pts(Week 3 notes). "Look at all those hand bags stacked up on the shelves in the shop.That shop owner must be pricing those handbags way too high."Explain this comment and what economists would expect to have happen and why. (For full points, use an economic diagram and economic ideas and terms to explain this comment.)

3. 20 pts(Week 4 notes). Consider the market for cut flowers. Draw the market diagram for cut flowers and make sure that the diagram is completely labeled.

Market: Cut flowers

Price: Price per bunch

Quantity: Bunches per week

Start the market at a market price of $5 per cut flower and 12,000 bunches per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Higher product taxes

(b) Population likely to buy flowers increases

4. 35 pts(week 5 and 6 notes) Consider the market for Red Leaf Lettuce. Explain the following comments using the economic diagrams, terms and ideas we are learning.

a. "No, my friend, you have it all wrong. The market is in great shape.It is producing just the right amount of red-leaf lettuce.Trust me, it is very efficient."

b."Oh, sure there is a little bit of pesticide run-off that is harming a few frogs, but that doesn't mean the market is inefficient."

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12pt

Paragraph

1. 25 pts(week 2 notes). A farmer is over-heard saying, "Every time I produce more and more grapes, I lose out on apples. You know, that means my costs increase." (Use an economic diagram and economic ideas to explain this comment.)

2. 20 pts(Week 3 notes). "Look at all those hand bags stacked up on the shelves in the shop.That shop owner must be pricing those handbags way too high."Explain this comment and what economists would expect to have happen and why. (For full points, use an economic diagram and economic ideas and terms to explain this comment.)

3. 20 pts(Week 4 notes). Consider the market for cut flowers. Draw the market diagram for cut flowers and make sure that the diagram is completely labeled.

Market: Cut flowers

Price: Price per bunch

Quantity: Bunches per week

Start the market at a market price of $5 per cut flower and 12,000 bunches per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:

(a) Higher product taxes

(b) Population likely to buy flowers increases

4. 35 pts(week 5 and 6 notes) Consider the market for Red Leaf Lettuce. Explain the following comments using the economic diagrams, terms and ideas we are learning.

a. "No, my friend, you have it all wrong. The market is in great shape.It is producing just the right amount of red-leaf lettuce.Trust me, it is very efficient."

b."Oh, sure there is a little bit of pesticide run-off that is harming a few frogs, but that doesn't mean the market is inefficient."