Economics 20.

1 Assignment for the last week of June 2011 (Deadline: Jul 4,2011; 12mn) The table below represents the demand and supply schedules for bread. Analyze graphically and mathematically in order to answer the questions: Price 5 10 15 25 39 Quantity demanded 50 45 34 12 5 Quantity supplied 16 20 30 41 45

1. Make a graph. Label the (x,y) pairs as Points A, B, C, D and E. 2. Determine the slopes from: a. A to B b. B to C c. C to D d. D to E What have you observed? What is the economic relationship between price and quantity supplied? Price and quantity demanded? 3. If you graphed the two schedules in one graph, what have you observed? Did you see an intersection? What are the x and y values at the intersection? What is the economic term for this intersection?1 4. Assume that the linear relationship between unemployment rate and inflation rate is denoted by the following equation: a. Unemployment = (.05) Inflation + 10 i. If there is no inflation rate, what would be the unemployment rate? ii. Make a graph for the two intercepts (inflation and unemp intercepts). iii. What is the slope? iv. What does the slope measure in this case? v. Does this follow the Phillips curve theory on the relationship between inflation and unemployment rate? 5. Give a summary of the recent State of the Nation Address 2011. Highlight the priorities and the challenges of the new administration. In your opinion, are there any other issues that the SONA missed? Explain. 6. Assuming that you have the following (via Set theory, review your college algebra): A B

Knowing that Set B is a subset of Set A, think of A as the United States and B as New York city; such that, NY is a subset of US. Mathematically, via set theory, this is true: Whatever is true to the US is necessarily true for NY. Now, denote A as US GDP growth rate and B as NY GDP growth rate. Does it always follow that US GDP growth rate will be the same with that of NY GDP growth rate? Is it a fallacy? Explain. N.B. Please submit your answers in the following format (Otherwise, deductions will be imposed for not following instructions). More so, make your answers well-organized and precise. a. Submit in pdf format via email b. Subject line: Econ 20.1 (section), A2, surname1, surname2, surname3, c. Filename: Econ20_A2_surname1_surname2_surname3_......

This is a topic which will be discussed later on in our class. Just provide an educated guess. See the next chapters for the supply and demand functions and their equilibrium.