ECON 201 SEU Equilibrium Level Affect Quantity Demanded & Quantity Supplied Questions

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
ECON201 (2nd Term 2022-2023)
Release Date: 25/12/2022-Deadline: 19/01/2023 @ 23:59
Student’s Name:
Student’s ID Number:
CRN:
Course Name: Macroeconomics
Course Code: ECON201
Semester: II
Academic Year: 1442/1443 H, 2nd Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 15
Level of Marks:
Instructions – PLEASE READ THEM CAREFULLY
•
•
This assignment is an individual assignment.
The due date for Assignment 1 is by the End of Week 7 (19/01/2023)s
•
The Assignment must be submitted only in WORD format via the allocated
folder.
•
Assignments submitted through email will not be accepted.
•
Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling in your information on the
cover page.
•
Students must mention question numbers clearly in their answers.
•
Late submission will NOT be accepted.
•
Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
•
All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted.
‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1 Questions: Week 2 to Week 3: – [15 Marks]
1. Water is necessary for life. Is the marginal benefit of a glass of water large or
small? Give an example of some action from your real life that has both a
monetary and nonmonetary opportunity cost. (3 Mark)
2. What does the “invisible hand” of the marketplace do? Explain the two main
reasons of market failure and give an example of each. (3 Marks)
3. How does a price ceiling set below the equilibrium level affect quantity demanded
and quantity supplied? (3 Marks)
4. What would be the impact of imposing a price floor below the equilibrium price?
If a price floor benefits producer, why does a price floor reduce social surplus? (3
Marks)
5. Illustrates the market for Pizza has the following demand and supply
schedules: (3 Marks)
Price
$3
$4
$5
$6
$7
$8
Quantity
Demanded
115
95
80
67
50
38
Quantity
Supplied
37
55
80
95
110
122
a. Graph the demand and supply curves. What is the equilibrium price and
quantity in this market?
b. If the actual price in this market were above the equilibrium price, what would
drive the market toward the equilibrium?
c. If the actual price in this market were below the equilibrium price, what would
drive the market toward the equilibrium?
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
College of Administrative and Financial Sciences