Chapter+6+Work

6.1 pg 131 #1-7
 * 1) What makes equilibrium so special is that its the point in where price and quantity are at a perfect balance.
 * 2) One situation where excess demand occurs is when quantity demanded is more than quantity suppplied.
 * 3) Price floor is the minimum price for a good while price ceiling is the maximum price that can be legally charged for a good.
 * 4) Rent control works in a way that it will increase the demand for apartments by lowering the prices or vice versa.
 * 5) A) Sales and office. B) Management and profesional. C) Getting laid off :c
 * 6) It can on one hand help a product and help promote sales or it can do the opposite and in turn make the product be a failure.
 * 7) A- Equilibrium Point B-Disequilibrium Point C- Supply curve D- Price Floor E-Price Ceiling F-Demand Curve

6.2 #1-5 on pg. 137
 * 1) When quantity supplied exceeds quantity demanded at a given price.
 * 2) An example of a search cost is driving to different stores and calling different towns to find and available doll.
 * 3) A) The equilibrium price will go down because of the change in demand. B) The Equilibium price will fall because of the excess supply. C) The equilibrium price will go up because of limited supply and higher demand.
 * 4) They must then have to raise the price of the good when they sell it in order to reach the breakeven point.
 * 5) A) Increased B) 20 and 150. C) 25 and 180. D) It will curve to the left and prices will go up. E) Price: 30 and 210

6.3 Read and Take Notes...Answer Questions #1-4 on pg. 144
 * 1) A supply shock changes the equilibrium price because now the supply is limited and quantity is down as well.
 * 2) Rationing is diffrent from a price based market because its means to divide up the goods and services and it is very expensive. It takes what we have and instead of raising prices it just divides up the products.
 * 3) lexibility, "free", and we can use prices as an incentive.
 * 4) Where a 2 for 1 sale occurs on the cherriest of all converse. Or when a new Ipod is released and its price is on roids' at least until like 3 months later where it significantly drops.

Chapter 6 Review pg 146 #1-7, 9-16
 * 1) Equilibrium
 * 2) Search Costs
 * 3) Rationing
 * 4) supply shock
 * 5) surplus
 * 6) shortage
 * 7) price floor
 * 8) Changes of supply or demand will result in a change in equilibrium
 * 9) The government can use price floor and price ceiling to help determining some prices
 * 10) It can anger some companies because they must now sell the at a price that the government wants and not at a price they want.
 * 11) Because high prices tell suppliers to sell and when prices are low it tells them to save and sell them on a better day.
 * 12) By using the demand schedule we can see where the equilibrium will be after supply and demand changes.
 * 13) Cities have passed this law to help the inflation rates and help local renting apartments.
 * 14) Because then now we dont have to be traveling distances to find lower prices. We have google.
 * 15) Because now we can ration goods and products in a way to adjust to prices.
 * 1) Because now we can ration goods and products in a way to adjust to prices.