Principles Of Microeconomics - Explain why the following statement

 Principles Of Microeconomics

Students will answer each critical thinking questions with a minimum of 200 words.

Critical Thinking Questions:

1. 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 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?”