Economics Homework Help

1. Chapter 3 is a crucial chapter as it discusses the core economic tools used in the classic economic theory: Demand, Supply, and Market Equilibrium. Can you discuss how does market equilibrium works in your sector- automotive industry, logistics, healthcare or any other industry that you are familiar with. Who creates the demand and who the Supply of the goods/services you are providing? How does the market (in this sector) reach equilibrium? 2. Chapter 4 discusses some inefficiencies in the markets such as price controls, taxes, and subsidies. However not all sectors are heavily regulated, and some are definitely more than others. Can you describe a sector that has been negatively impacted because of these regulations and another that was benefited from the lack thereof?

You can also explore the data from the Bureau of Economic Analysis. The link will take you to the industries with the highest GDP increase for 2019.

https://apps.bea.gov/industry/factsheet/

3. Please answer the following question (300-400 words) What are the main determinants of a product’s price elasticity of demand? Can you think of products that their price has been affected during the COVID pandemic and explain their elasticity?