Variety

As civilization rapidly developed, human needs had increased and came with variety. There's no exception whether it is religion, politics, education, lifestyle, and even in economic markets. Yet with human needs came systems of provision. There are rights and duties to consider and it's never a choice, but it's a must. 

In business, there are 3 types of ownership. In accounting, this variety has its special treatments, every type of ownership is treated differently in accounting. First, proprietorship is what we usually encounter everyday. This is what I call "sure solo business". I'm a proprietor myself, i do business alone and i'm the owner, the manager,the sales officer, and cashier -- all in one. Yet proprietorship also has variety which will depend on the organizational structure. Next, partnership is defined by the word itself. There can be 2 or more owners with one or more general partners. There can be variety in partnership which will be dependent with the agreement between partners. Lastly,  the corporation, which is usually big time businesses. The ownership is broad and comes with variety.

In the market, there are 4 types of competition. It can be perfect, monopolistic, oligopoly, or a monopoly. The perfect competition which was discussed in class has a number of characteristics. It has many buyers and sellers, same product or services, and participants in this competition are price takers. A situation where perfect competition can be seen is among "kwek-kwek" vendors. We can see them anywhere, almost everywhere. Second is the monopolistic competition which is a form of imperfect competition where many competing producers sell products that are differentiated from one another (that is, the products are substitutes, but, with differences such as branding, are not exactly alike). As mentioned, a perfect example of this competition are the different boutiques in the mall. They are all sellers of clothes, bags, and shoes, but the designs are in variety. The buyers will be the ones to choose their preferred designs. Third, Oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Because there are few sellers, each oligopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms. This is a close competition among few oligopolists. Example is among airline companies. There are only a number of them and every time one offers promos to buyers, the other competitors make sure that they too will have promotional strategies. Lastly, monopoly exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. The example given was Xerox which reigned before as the only company that offers the photocopying machines. They have the right to set there prices and they don't have direct competitors compared to the other 3 types of competition.

Whatever it is, even if you disagree, everything in this human world comes in variety. Whether it is good or not, variety makes the world go round. Just like the different variety in colors, whatever your favorite is, the world has it -- it is in variety. 

Coconut levy fund

Coconut levy fund is an issue about CONTROL of Asia's biggest food and beverage company, San Miguel Corporation. For the government, these funds are likened to 750 million Damocles' swords hanging above the head of SMC Chairman Danding Cojuangco. Political Accomodation prevents government from dispensing justice.

Government has been under very tight leash because of the perceived political strength of Danding Cojuangco. He heads a big political party with a very extensive network of local politicians called NPC. It has previously aligned itself with Partido ng Masang Pilipino (PMP) of former president Joseph Estrada and is now poised to field its own presidential bet come May 2010.

There is no public participation in the decision-making process. It is not surprising that environmental laws are not enforced, and local chief executives are not held accountable by the President. The politics of accommodation rears its ugly head, at the expense of the people’s welfare, ecological integrity and our fledging democracy.

The  power and influence held by a political clan is buttressed by sweet dealings with some members of the business sector, and the support of the enforcement agencies. Political survival is primordial in the decisions made.

Governor Dominguez said, “The solution to the issues in peace and security, economy, environment, and social and human development always depends on the kind of governance a region has.One way of developing economy is that the government must initiate moves so that the business sector can come in.

It must provide incentives to the private sector and must encourage entrepreneurs to invest.” Mafin Tan, who represented the business sector, said, “ The peace and order in Mindanao is very critical. The problem is more of the image perception that Mindanao is not a safe place to do business. Once a businessman will develop a certain business, the government should cooperate because investments is one of the keys to solve poverty. Businessmen should get protection and infrastructure support from the government.”

The reality of politics always sets during elections.Candidates are forced to enter into horsetrading with big businesses and big politicos, national or local in stature, for campaign funds and to muster enough votes. So much has been changed by our politics.  It started during Erap’s time when big businesses and influential individual had their say on how government is run as Erap’s payback during his campaign.  This was emulated and further improvised by Gloria Arroyo when the rich and influential clearly have their say in government.  One can clearly see the hand of these businessmen and powerful cliques in every government decision and appointents to governmental positions.  This is the kind of politics that has dominated the country for the past 12 years.  While this kind of politics is effective in catapulting one to the Philippine presidency, this always result in political accomodation and the sacrifice of good governance and public service as shown both by the Estrada and Arroyo presidencies.

BALITANG SEKSEK

THE MAKING

Janine Rose Lumanag Photography

February 09, 2011 (Wednesday) , we were still trying to figure out on how to make a role play out of the topics we've chosen. That day, since some of us wanted a prostitution-based-role-play and some wanted to make it a little serious and realistic, we decided to make different scenarios out of the different topics we've chosen and made Balitang Siksik of Banana Split  the main concept (with a twist of Economics "Espesyal"). *wink*

These pictures were taken during the final rehearsal. Props were made during our break. :)

THE SCRIPT:

It was a draft made by Rose Anne Esteban and Delfa Alvar which turned out to be our final script. For the program flow:

1. introduction

2. scene 1

3. scene 2

4. advertisement

5. scene 3

6. finale

THE PROPS:

There were more props used during our presentation ( we have the video to prove it) yet we weren't able to take pictures of them. 

1. The Jimstea mugs and poster during the advertisement, 

2. the graph used during the prostitute scene, 

3. the table used during the workers' strike, and 

4. the hearts used for the Banana Mobile promotion. :)

THE CONCEPT

Balitang Seksek is a TV program for Economic Issues. Aside from live updates from field reporters, during the program, videos concerning economic issues are reposted. Since the concept came from Banana split, a comedy gag show, we made an extra effort to make it funny and realistic.

We had 7 news anchors ( (1) Delfa Alvar, (2) Natara Jean Mozo, (3) Vincent Obedo, (4) Lora Canastra, (5) Janel Baino, (6) Rose Esteban, and (7) Yollaine Galias) on stage who also played the different characters in the three scenes presented and the advertisement.

THE ROLE PLAY

introduction


(pictures only, for the video: 
http://www.youtube.com/watch?v=lpcLy-a-wbA)

Our introduction was not exactly the same with Balitang Siksik of Banana Split. We made our own script and Choreography. Names of the famous artists of Banana Split were not used/mentioned during our presentation. 

scene 1

(pictures only, for the video: 

http://www.youtube.com/watch?v=lpcLy-a-wbA)

Scene 1 was all about competition and forces of supply and demand. The competition was between NokiYaki and B-Mobile. They were two mobile companies who were up to promotions. Since nowadays the demand in telecommunication is very high, they were trying to attract the consumers to avail their services and this created competition. The demand was high and competition between suppliers increased. Yet the promotional advertisements of the two companies were different. NokiYaki aimed to attract consumers with loved ones working abroad. While B-mobile aimed to attract young consumers who are looking for partners.

scene 2

(pictures only, for the video: 

http://www.youtube.com/watch?v=lpcLy-a-wbA)

Scene 2 was all about dead weight loss/tax. Since the demand for prostitutes was high, the government decided to legalize prostitution and taxed it. The tax imposed by the government had a great effect in the demand for prostitutes. Dead weight loss was high. The quantity demanded and supplied decreased. The price paid by consumers increased and the price received by the prostitutes decreased. Before the tax was imposed, the consumer (Vincent Obedo) can afford to pay for 3 prostitutes, but after prostitution was legalized the price of the prostitute increased and he couldn't afford 3prostitutes at the same time. There was a decrease in the demand for prostitutes and a decrease in supply because prostitutes would now receive less because of the tax imposed.

advertisement

(pictures only, for the video: 

http://www.youtube.com/watch?v=lpcLy-a-wbA)

LOVE THE GOODNESS OF JIMSTEA 7 in 1 coffee mix..masarap na.mas healthy pa..

for more details:
www.jimstea.blogspot.com

scene 3

(pictures only, for the video: 

http://www.youtube.com/watch?v=lpcLy-a-wbA)

Scene 3 was all about Cost of Production. There was a strike in the company because of layoffs. The reason was the diminishing marginal return. The company was hiring new laborers yet they were not buying new equipments for production. For every additional laborer, there is a diminishing marginal return. So they produce less than what was expected so it's a risk for the production. If there were more workers but few equipments it would surely produce negative marginal returns. This would hinder the primary objective of a business entity which was to minimize cost and maximize profit. Yet like what we usually see on television news, laborers failed to understand this and they continue to organize strikes against there respective companies.

finale

(pictures only, for the video: 

http://www.youtube.com/watch?v=lpcLy-a-wbA)

Our finale was not exactly the same with Balitang Siksik of Banana Split. We made our own script and Choreography. Names of the famous artists of Banana Split were not used/mentioned during our presentation. 

For the real, uncut video of our presentation: 
http://www.youtube.com/watch?v=lpcLy-a-wbA


BALITANG SEKSEK 
"ECONOMICS ESPESYAL"
PRODUCTION STAFF

REACTION PAPER for January

Think tank probes issues on OFW migration to UAE

By Jun Burgos
INQUIRER.netFirst Posted 10:30:00 06/13/2010

MANILA, Philippines—A probing study on Philippine labor migration to the United Arab Emirates (UAE) was recently released by the Migration Policy Institute (MPI), an independent, non-partisan, non-profit think tank based in Washington DC, analyzing the movement of people worldwide.

Entitled “Migration’s Middlemen: Regulating Recruitment Agencies in the Philippines-United Arab Emirates Corridor,” it is authored by Ms. Dovelyn Rannveig Agunias, MPI Policy Analyst focusing on temporary and circular migration and diaspora policy.

The study was informed by 44 in-depth interviews with officials from the UAE and Philippine governments, recruitment agencies, and non-government organizations as well as with employers, and including focus group discussions with 86 Filipino migrant workers themselves.

It examined private recruitment agencies’ practices as well as their regulation by the Philippine and UAE governments, and notes room for significant improvement in this aspect.

The study utilized Philippine government data, which showed, among others, that there were some 600,000 Filipino workers in the UAE as of 2008 consisting of domestic workers, receptionists, and engineers, among others, making up nearly 12 percent of the population there, and with an annual OFW inflow of 200,000.

The author acknowledged that private recruitment agencies manage much of the flow of Filipino workers to the UAE, which is the third largest destination for Filipino migrants after the United States and Saudi Arabia, but noted that the costs of the services of these agencies for migrant labor deployment sometimes outweigh benefits for the workers due to the exorbitant fees they collect and even their violation of the rights of the workers they deploy.

According to the MPI report, “While the recruitment agencies, which are located in the Philippines and the United Arab Emirates, provide critical services such as logistical support and information about visa policies and living and working conditions, some abuse their clients by charging exorbitant fees or violating basic human rights.”

It added, “While the two governments have regulated recruitment agencies’ operations for nearly three decades, there is a policy mismatch between the two regulatory systems that, coupled with difficulties in enforcing regulations, has led to inadequate protections for migrant workers as well as a continuing flow of unauthorized workers.”

The MPI said this resulted in a three-tier labor migration system such as:

* A documented and organized labor migration based on written contracts following strict regulatory guidelines of both countries;

* A labor flow based on shifting arrangements that typically result in a lower wage, a different job, and reduced benefits compared to those originally promised to migrant workers by recruiters; and,

* An unregulated, unauthorized flow of workers who bypass the recruitment system altogether and migrate to the United Arab Emirates with a visitor visa.

The report further said, “While both countries are considering more stringent regulations for recruitment agencies, both governments must first commit to fully funding and creating capable and effective institutions to jointly harmonize, enforce, and closely monitor the impact of current and new regulations. Otherwise, regulatory changes could open the door to unintended effects, including increasing abuse and corruption and making illegal channels more attractive for prospective migrants.”

“The findings of this study are relevant beyond the Philippines-UAE corridor. They serve as a vital point of reference for other countries in the Middle East and elsewhere as they attempt to balance the need to create a flexible and dynamic labor migration system with the obligation to protect workers’ welfare in an increasingly transnational and interconnected global economy,” the report concluded.

Indeed, the recruitment industry is generally credited for its major contribution in matching millions of Filipinos to jobs in the UAE and many other countries. The industry’s feat, undeniably, likewise contributes to the economic stability of our country as well as to that of the OFW destination countries including providing for the latter’s labor demand.

But this recruitment industry, understandably the one principally benefiting from OFW migration, should likewise attend to and ensure, alongside its economic interests, the welfare and development of the workers they deploy. After all, a just and equitable sharing of the economic benefits of the migration industry it services would promote more gains for all stakeholders.

Surely, our government, for its part, would find very relevant insights from this MPI study to enable it to undertake necessary measures to improve the procedures, regulations and the overall policy on OFW migration.

Reaction:

Yesterday, I had a conversation with my Uncle Ranil and Aunt Lita at the Brokenshire Hospital Cafeteria. They had their afternoon snack. Yet I chose to have dinner since it was already 4:45pm and it was for free, so I thought I’ll be able to save money if I’m going to have dinner early. I was saved from a 50php meal. So how’s this related to my reaction paper? Nothing. I just want to share my thoughts from yesterday.

   

Seriously, I got the idea from our conversation.  My Uncle Ranil is an Overseas Filipino Worker in UAE. He went home on a vacation leave last December and had his wedding set last January 08. His wife Aunt Charm is also an OFW in Hongkong. Yes, they’re miles and miles away from the Philippines and from each other. The newlyweds should have their honeymoon right now yet financial lapses because of the dying economy made it impossible for them.

I remember Uncle said this, “60% of OFWs in UAE failed, and I’m just one of the 40% lucky ones.”  He said most of the female OFWs in UAE were molested or if not, they’re selling their bodies to some Filipinos or Arabs for money. That every time he heard friends in the Philippines bragging about their mothers, aunts, sisters, and female relatives working in UAE, he can’t help but feel sorry for those female OFWs. Well, I guess my Uncle didn’t mean to generalize the idea, but I think he’s talking from experience. He lived and worked and was successful in UAE, yet he called it “luck”. He added, it was not easy to be a Filipino when you are in UAE, “lisod kaayo” as he described it in vernacular, because there’s no guarantee or any protection for us. We’re not safe there.

Somehow, I feel the pain of having a loved one working overseas. My fiancé is working in Singapore right now. But I’m confident that he’s safe there because the government of Singapore takes good care of foreign workers in their country. There is equal right and less discrimination. How about those in UAE? These overseas Filipino workers are victims of a dying economy here in the Philippines. They are willing to risk their lives for a little difference in salary, just to make both ends meet for their families. That’s why a lot of cold-hearted individuals took advantage of this and made these poor, responsible bread winners as victims of their selfish schemes.

If the government is starting to get pissed off with these problems on OFWs, then they should do something about our economy. We badly need more jobs here in the Philippines, adequate salaries, and “real” employee benefits. If not, the least they can do, they “must” do something to help OFWs and give them assurance that they’re safe by coordinating with UAE. For every OFW, there are about 2 or more Filipinos here in the country that is dependent on them. If they failed or worst, die, their families here will suffer.

Poverty had caused too many problems in the country. It ruined families and wasted lives. Yet OFWs give hope to our country. Politicians will save us? I won’t even consider that. I think these modern Filipino heroes will help us and they deserve support from the government. Instead of wasting billions for overpriced government projects, the government should give these heroes benefits. What we need now is a working, not a talking government. We’re far, far, and far left behind from our neighbouring Asian countries. We don’t need big, unreachable, unattainable, overpriced projects. FILIPINOS NEED REAL HELP.

REACTION PAPER

Source: http://www.prb.org/Publications/Datasheets/2006/MakingtheLinkinthePhilippinesANewPRBDatasheet.aspx

(April 2006) With one of the highest population growth rates in Southeast Asia, the Philippines is experiencing increasing human pressure on its natural resources, including forests, coasts, and safe water supplies. And the decline of this natural resource base is threatening the health and well-being of Filipinos in every region—urban and rural areas alike.

A new Population Reference Bureau datasheet—Making the Link in the Philippines—provides national, regional, and provincial data for 15 indicators that highlight the connections among population trends, natural resource use, and the health and well-being of Filipinos.

"These issues are all intrinsically linked," says Roger-Mark De Souza, technical director of PRB's Population, Health and Environment Program. "You can't alleviate poverty if large disadvantaged populations don't have basic services such as health care and safe drinking water."

Examples of these linkages abound in the Making the Link in the Philippines datasheet, which includes indicators such as population growth rate, infant mortality rate, access to safe water sources, forest cover, and incidence of poor families. Highlights include:

·         Almost one-half of the population of the Philippines now lives in urban areas. And addressing urban issues—such as the management of waste, water and air quality, and access to adequate housing—has become a significant challenge. In the National Capital Region (NCR), the most highly urbanized region in the country, 16 percent of families lack access to safe water sources.

·         Fertility rates remain above the regional average. The Philippines' total fertility rate (lifetime births per woman) is currently 3.5, higher than most of the country's Southeast Asian neighbors. This high rate is due in part to an unmet need for family planning: Approximately 17 percent of the country's married women either would like to wait before having more children or would prefer to have no more children, but aren't using traditional or modern methods of family planning.

·         Human vulnerability to natural disasters is growing. Increasing population density and environmental degradation are accelerating vulnerability to disasters in the Philippines, as settlements encroach into disaster-prone areas. Nearly 90 percent of the country's mangroves have been cleared, eliminating natural barriers to coastal storms and flooding. Likewise, the dramatic reduction in forest cover (only about 7 percent of the Philippines' original lowland forest cover remains, though reforestation efforts have increased forest cover in some provinces) contributes to the severity of flash floods and mudslides.

What you do little today can be big tomorrow. Nowadays, there is that need for social awareness among Filipinos. Yet Filipinos were too dramatic about two things: Politics and Religion. Unknowingly, there are little issues in our country that are continuously growing and becoming threats not only to society, but more to Philippine economy.  

In politics, many well-educated people were stirring nationalism among Filipinos. Media led our attention to these political-related issues. Then, by just listening, reading, or watching, we tend to conclude hastily and generalize everything. Haven’t you observed?  Even the slightest issues, garbage disposals, epidemic diseases and even the lack of milk for the infants, were blamed to our crap government. Well, I do believe that our government is not superman or wonder woman or any other fantasy super heroes. Can’t you see the bigger picture of this? There is more than just political failure; it is the Filipino mentality, particularly towards population growth. Each of us must be socially responsible and not be dependent to social trends and government promises, there is a call to act. Actually, we can simplify this by saying – “Think about the future of your children.” Unfortunately, we failed to see the future effects of our past actions that’s why this once little issue became a growing threat to us. In the end, there’ll be no room for blames and regrets; we’ll have a bitter taste of our own mistakes. I know we won’t let that happen so stop blaming others and be independent.

We are known to be the only Christian country in Asia and with one of the highest population growth rates in Southeast Asia. When I was in high school, I heard that birth control is a sin because it is stated in the bible, “go and multiply”. So I guess population growth is one popular technique for religion growth. Well, I can’t blame other religions if they have foreseen Christianity as a religion for the poor. In the Philippines alone, among the 90% Christians, 70%-80% belong to the poor. Am I saying that religion is the cause of poverty? No. We are the architects of our own lives, and look around you, God provided, provides, and will provide us with everything that we “need”. We were gifted with intelligence not to defend our mistakes, but to think and be able to help the society. Go and multiply – go preach the good news and save souls, multiply in Jesus’ name.

A wise man knows how to listen and act accordingly. In our society today, many are intelligent, but only a few are gifted with wisdom. It’s never too late if you act “now”, but tomorrow can be the deadline. If we’ll be able to solve population growth, there’s a huge possibility for economic growth in the Philippines. We can never be like China, so don’t ever think of population growth as an advantage. More Filipinos will equal to limited natural resources, higher unemployment, more epidemic diseases, more crimes, and a whole lot more. See? Poverty is caused neither by politics nor religion. It is us; we should control our urges and minimize population growth. Let’s not wait for another flood and Noah’s ark. Let’s not wait for another world war. The only solution to this is for us to act, and think of our future. This world might exist for another billion years, and we wouldn’t want our great, great grandchildren to live in a dying planet.  

Answers to Review Questions Econ 222

Chapter 4:
1. d
2. b
3. a
4. b
5. a
6. c
7. d
8. a
9. c
10. a

Chapter 5:
1. c
2. d
3. b
4. b
5. c
6. c
7. a
8. b
9. d
10. c

Chapter 6:
1. b
2. c
3. a
4. c
5. b
6. a
7. b
8. c
9. a
10. b

Economics Classes: Review Questions (Chapter 4) for Econ222

Economics Classes: Review Questions (Chapter 4) for Econ222:

Review Questions (Chapter 4) for Econ222

1.	Which of the following is NOT a characteristic of a perfectly competitive market? a. The goods being offered for sale are all the same. b. Buyers and sellers are very numerous. c. Buyers and sellers are price takers. d. It is difficult for new firms to enter the market.

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2.	A market with only one firm is known as a: a. complementary market. b. monopoly. c. perfectly competitive market. d. normal market.

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3.

An increase in demand means that: a. when the price drops consumers are willing to purchase greater quantities of the good. b. consumers are willing to purchase greater quantities of the good at any given price. c. when the price rises, consumers are willing to purchase greater quantities of the good. d. consumers make the price drop by buying greater quantities of the good.

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4.	If good B is a substitute for good A, and the price of good B increases: a. the quantity demanded of good A will decrease. b. the demand for good A will increase. c. the price of good A will tend to decrease. d. the quantity demanded of good B will increase.

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5.	When the price of a good increases: a. the quantity supplied of the good will increase. b. the quantity supplied of the good will decrease. c. the supply curve of the good will shift to the right. d. the supply curve of the good will shift to the left.

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6.	A new technology that helps firms reduce production costs will cause a: a. movement down and to the left along the supply curve. b. movement up and to the right along the supply curve. c. shift to the right of the supply curve. d. shift to the left of the supply curve.

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7.	If the price in a market happens to be below equilibrium, there will be a ________ in the market, and the price will tend to ________. a. surplus, drop b. surplus, rise c. shortage, drop d. shortage, rise

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8.	If the price in a market happens to be above equilibrium, there will be a ________ in the market, and the price will tend to ________. a. surplus, drop b. surplus, rise c. shortage, drop d. shortage, rise

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9.

Suppose that a scientific study just published demonstrates that eating apples makes people much healthier. How will this affect the equilibrium price and quantity in the market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease.

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10.

Suppose the price of corn syrup increases. Given that corn syrup is a major ingredient in the production of soft drinks, how will this affect the equilibrium price and quantity in the soda market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease. Review Questions (Chapter 5) for Econ222 1. A good will tend to have an inelastic demand if: a. the good has many close substitutes. b. the good is a luxury. c. the market is defined very broadly. d. the time horizon is long. 2. A perfectly elastic demand is represented graphically by a: a. relatively steep demand curve. b. relatively flat demand curve. c. vertical demand curve. d. horizontal demand curve. 3. What effect will an increase in the price have on Total Revenue, if demand is elastic? a. Total Revenue will increase. b. Total Revenue will decrease. c. Total Revenue will first decrease and then increase. d. Total Revenue will remain unchanged. 4. The price elasticity of demand tends to be more elastic: a. at points further up and to the left along the demand curve. b. at points further down and to the right along the demand curve. c. when the demand curve becomes steeper. d. when the demand curve is vertical. 5. Suppose that General Cars increases the price of its Cadiclap model from $13,500 to $16,500. As a result of this, the quantity demanded of the Cadiclap model decreases from 600,000 to 400,000 per year. Find the price elasticity of demand of the Cadiclap using the Mid-Point method. a. -3.0 b. -0.5 c. -2.0 d. -0.3 6. If a firm needs to increase its Total Revenue, the firm should ________ the price, if the demand for its product is ________. a. drop, inelastic b. raise, elastic c. drop, elastic d. drop, unit elastic 7. Suppose that consumers' incomes rise by 3%, and that this causes the quantity demanded for a good to increase by 4.5%. What is the income elasticity of demand? a. 1.50 b. 0.67 c. -1.50 d. -0.67 8. Suppose that a good has an income elasticity of demand of -2.0. This means that the good is: a. normal. b. inferior. c. a substitute. d. a complement. 9. If two goods have a cross-price elasticity of demand of -0.8. This means that these goods are: a. normal. b. inferior. c. substitutes. d. complements. 10. The price of good A increases from $4.50 to $5.50. This causes the quantity demanded of good B to increase from 900 to 1100 units per month. Find the cross price elasticity of demand using the Mid-Point method. a. -1.0 b. +2.0 c. +1.0 d. -2.0 Review Questions (Chapter 6) for Econ222 1. Suppose that a regulation is in place that does not allow the price of a good to exceed $5. If this price is above the equilibrium price in the market, this would be an example of a: a. binding price ceiling. b. not binding price ceiling. c. binding price floor. d. not binding price floor. 2. Suppose that a regulation is in place that does not allow the price of a good to fall below $10. If this price is above the equilibrium price in the market, this would be an example of a: a. binding price ceiling. b. not binding price ceiling. c. binding price floor. d. not binding price floor. 3. Suppose that a regulation is in place that does not allow the price of a good to exceed $5. If this price is below the equilibrium price in the market, this would be an example of a: a. binding price ceiling. b. not binding price ceiling. c. binding price floor. d. not binding price floor. 4. If a price floor is in place and it is binding, the market will: a. remain in equilibrium, unaffected by the price floor. b. experience a shortage. c. experience a surplus. d. adjust its equilibrium point toward the price floor. 5. If a price ceiling is in place and it is binding, the market will: a. remain in equilibrium, unaffected by the price floor. b. experience a shortage. c. experience a surplus. d. adjust its equilibrium point toward the price floor. 6. If a price floor is in place and it is not binding, the market will: a. remain in equilibrium, unaffected by the price floor. b. experience a shortage. c. experience a surplus. d. adjust its equilibrium point toward the price floor. 7. If a tax is imposed on buyers of a good, the ________ curve of the good will shift ________ by the amount of the tax. a. demand, upward b. demand, downward c. supply, upward d. supply, downward 8. If a tax is imposed on sellers of a good, the ________ curve of the good will shift ________ by the amount of the tax. a. demand, upward b. demand, downward c. supply, upward d. supply, downward 9. If a tax is imposed on a good and the incidence of the tax ends up falling more heavily on the sellers than on the buyers, this will be because: a. demand is more elastic than supply for that good. b. demand is less elastic than supply for that good. c. the tax was imposed on the buyers of the good. d. the tax was imposed on the sellers of the good. 10. If a tax is imposed on a good and the incidence of the tax ends up falling more heavily on the buyers than on the sellers, this will be because: a. demand is more elastic than supply for that good. b. demand is less elastic than supply for that good. c. the tax was imposed on the buyers of the good. d. the tax was imposed on the sellers of the good.