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Macroeconomics, 9/e

Campbell R. McConnell, University of Nebraska, Lincoln
Stanley L. Brue, Pacific Lutheran University
Thomas P. Barbiero, Ryerson University

Demand and Supply

Internet Application Questions


1		What does the article provided in the Austin Business Journal tells us about the relationship between Supply and Demand for commercial real estate. Use the concepts of shortage and supply in your answer.



2		Does the above analysis apply to commercial real estate in large Canadian cities as well? Explain.



3		What is the main problem that suppliers of commercial real estate face as described by the article?



4		What are some demand shifters in the commercial real estate market? How do they affect the equilibrium price and quantity of commercial real estate?



5		Read the article http://www.economics.about.com/library/weekly/aa010900.htm then answer the following questions: a) How does the market for Pokemon cards differ from that of other goods such as stock, furniture or used cars?For an alternate perspective, see article on baseball cards and slumping Pokemon era at: http://subscribe.wsj.com/microexamples/demandsupply.html b) Pokemon trading cards first became popular in U.S. and Canada in the late 1990's after being imported from Japan. Draw a diagram of the market for Pokemon cards including both market demand and supply. Also label the equilibrium price and quantity of cards.



6		Using the diagram you drew in (b), explain how the equilibrium price and quantity of Pokemon cards would be affected by the following: In 1998, Pokemon takes Canada by storm and the fad caused tastes and preferences for Pokemon cards to increase greatly. As Pokemon mania takes hold, collectors expect the price of the cards to rise. There is an increase in the number of stores offering Pokemon cards for sale. John Irons argues in his article that after Christmas 1999, the price of Pokemon cards Could rise or fall. How does he explain this Using demand and supply curves? Pokemon cards are goods that are regarded as collector's items. That is, people hold onto them hope that their value will rise. There are many markets for collector's items, such as hockey cards, comics, coins and stamps. Using demand and supply analysis, explain why a rookie Wayne Gretzky card can command several thousand dollars while other hockey cards have little value.

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