Jeopardy Supply and demand 303 The FED Chapter 5 Supply/Demand 101 CPI and Inflation Supply/Demand 202 Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy

$100 Question from Supply and demand 303 Provide an example of Substitute Goods Other that the example I have used in class

$100 Answer from CH3 Nike Shoes Adidas Shoes How does the price of One effect the demand Of the other?

$200 Question from Ch 3 Provide and Example of Complementary Goods

$200 Answer from CH 3 Two goods that go together PB and J How does the price of One effect the demand Of the other?

$300 Question from CH 3 Explain why a shortage is bad for business

$300 Answer from CH 3 Customers will go Somewhere else Lost sales

$400 Question from Ch 3 Assume that the economy of the country of Alpha is experiencing increasing unemployment. Steak is considered a normal good in Alpha. Explain what the impact of the increasing unemployment on the market for steak in Alpha.

$400 Answer from Ch 3 Demand for stake would go down

$500 Question from CH3 Coffee and cream are complementary goods. An unexpected period of bad weather adversely affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad weather on the price and quantity of cream.

$500 Answer from Ch 3 Demand for cream would Shift down

$100 Question from The FED Provide one of the three goals of the FED discussed in class?

$100 Answer from Motivation The FED 1.Price Stability 2.Full Employment 3.Economic Growth

$200 Question from The FED This is what we call the interest rate the FED Charges banks to borrow money

$200 Answer from The FED Discount Rate

$300 Question from The FED What would the fed do to the reserve requirement under a tight monetary policy.

$300 Answer from The FED Under a tight monetary policy the FED would raise the reserve requirement

$400 Question from The FED If the fed was buying bonds would this Be a easy or tight policy?

$400 Answer from The FED If The fed was buying bonds They would be under a easy policy Because they would be adding to the Money supply

$500 Question from The FED Given a 20% inflation rate what type of Monetary policy would they enact? And what might the do with one of their tools

$500 Answer from The FED Tight Discount Rate = Up Reserve requirement= Up Sell Bonds

$100 Question from Supply and Demand/ Ch 5 What causes a move along the supply or demand curve?

$100 Answer from Supply and Demand/ Ch 5 A change in price

$200 Question from Supply and Demand/ Ch 5 When looking at demand side What is the relationship between Price and quantity

$200 Answer from Supply and Demand/ Ch 5 The lower the price the higher the demand

$300 Question from Supply and Demand/ Ch 5 When looking at Supply Side what is the relationship between price and quantity supplied

$300 Answer from Supply and Demand/ Ch 5 The higher the price the more sellers are willing to supply due to profit opportunity

$400 Question from Supply and Demand Provide an example that would lead to An increase in demand of Oranges.

$400 Answer from Supply and Demand/ Ch 5 Medical Study is released that proves oranges have amazing healing powers.

$500 Question from Supply and Demand/ Ch 5 What would cause a decrease in quantity supplied of oranges

$500 Answer from Supply and Demand/ Ch 5 A Change In Price

$100 Question from CPI and Inflation Rate What does CPI stand for?

$100 Answer from CPI and Inflation Rate Consumer Price Index

$200 Question from CPI and Inflation Rate Define Consumer Price Index

$200 Answer from CPI and Inflation Rate A basket of goods and services Used to track changes in prices

$300 Question from CPI and Inflation Rate What is the ideal inflation rate According to the FED

$300 Answer from CPI and Inflation Rate 2%

$400 Question from CPI and Inflation Rate In the equation below what does The F and I stand for?

$400 Answer from CPI and Inflation Rate F = Final CPI Number I = initial CPI Number

$500 Question from CPI and Inflation Rate What could cause hyper inflation?

$500 Answer CPI and Inflation Rate 1.The Government starts printing money 2.The Circle of minimum wages going up And prices are increase to pay wages, then Workers ask for another raise due to the Rise in prices and so on…..

$100 Question from Supply/Demand 202 Define Equilibrium price

$100 Answer Supply/Demand 202 Where supply = Demand

$200 Question Supply/Demand 202 If supply is grater than demand You have this??

$200 Answer Supply/Demand 202 Surplus

$300 Question from Supply/Demand 202 If demand is grater that supply You have this?

$300 Answer Supply/Demand 202 Shortage

$400 Question from Supply/Demand 202 What does is mean if a product Has inelastic demand

$400 Answer from Supply/Demand 202 A change in price does not effect The demand as much

$500 Question from Supply/Demand 202 Provide an example of a product With elastic demand and justify your Answer.

$500 Answer from Supply/Demand 202 Luxury goods, Wants, Entertainment

Final Jeopardy Calculate the inflation rate for GAS 2002= Price $ = Price $4.52 Based on the inflation rate what Might the fed do using one of their tools

Final Jeopardy Answer 44% Raise Discount Rate Raise Requirement Buy Bonds