Selected Readings

d.The director of Occidental’s athletic department claims that the increase in enrollment resulted from the football team’s NCAA

Division I national championship.Is this claim reasonable? How would it show up in the new demand equation? 3.4The market demand and supply equations for a commodity are

a.What is the equilibrium price and equilibrium quantity? b.Suppose the government imposes a price ceiling on the commodity of $3.00 and demand increases to QD = 75 - 10P.What is the impact on the market of the government’s action? c. In a single diagram,illustrate your answers to parts a and b. 3.5The market demand for brand X has been estimated as

where Px is the price of brand X, I is per-capita income, Py is the price of brand Y,and Pz is the price of brand Z.Assume that Px = $2, I = $20,000,

Py = $4,and Pz = $4. a.With respect to changes in per-capita income,what kind of good is brand X? b.How are brands X and Y related? c. How are brands X and Z related? d.How are brands Z and Y related? e.What is the market demand for brand X?

Q P D = -50 10

Q P S = +20 25 .

Q P I P P x x y z = - - - + 1500 3 005 25 75 , . . .

SELECTED READINGS

Baumol,W.J.,and A.S.Blinder.Microeconomics:Principles and Policy,8th ed.New York:

Dryden,1999. Boulding,K.E.Economic Analysis,Vol.1,Microeconomics.New York:Harper & Row, 1966. Case,K.E.,and R.C.Fair.Principles of Macroeconomics,5th ed.Upper Saddle River,NJ:

Prentice Hall,1999. Green,W.H.Econometric Analysis,3rd ed.Upper Saddle River,NJ:Prentice-Hall,1997. Gujarati,D.Basic Econometrics,3rd ed.New York:McGraw-Hill,1995. Marshall,A.Principles of Economics,8th ed.London:Macmillan,1920. Ramanathan,R.Introductory Econometrics with Applications,4th ed.New York:Dryden

Press,1998. Samuelson,P.A.,and W.D.Nordhans. Economics,12th ed.New York:McGraw-Hill, 1985. Silberberg,E.The Structure of Economics:A Mathematical Analysis,2nd ed.New York:

McGraw-Hill,1990.