Microeconomics-Standard M11 &M12- Assignment 5

Role of Money-M11

1. Real money differs from play money because real money ahs value to it and play doesn't and real money has  purpose in the world so you can purchase things with it.
2. If someone wanted to buy my most prized material I would accept something equal to it or similiar to it in the place of money.

 1. The circular flow model tells us the three basic elements of the economy will work and interact together to ensure that needs and wants are provided.

        2. Househols pay taxes, provide labor to the government, and purchase goods and services from   businesses.

        3. Businesses accept labor payments from households through taxes, and tax goods and services to the government.

        4. The government recieves money from households through taxes, collect money from businesses through coroporate income taxes.

      5. Households are the four factors of production which is land,labor,capital goods, and entrepreneurship.

                                          Law of Demand and Law of Supply-M12

(a) The demand for chicken would increase causing a shift to the right in the curve.
(b) The supply would decrease and the curve would shift to the left.
(c) The supply of the coffee bean would decrease and the curve would shift to the left.
(d) The supply of the cardboard would increase and the supply curve would shift to the right.

a) The equilibrium quanity will increase because most adults will stop buying them because it contributed to high cholestrol.
b) The supply and quanity would most likely go down due to lack of workers
c) The equilibrium quanity would decrease because many consumers will buy the new product.

3. Substitutes can change the quanity demanded and a change in the consumer income.