Weekly Questions 02

Question 1: Check out the Demand Derivation App. How does changing the income level affect the demand curve. Explain in a sentence or two, and then show images illustrating this (hint, use the snipping tool and paste into Word or similar).

Question 2: Check out the Market Master Game. To start the game, hit the Play button in the upper right. In this game, you will choose how much the consumer should produce of X and Y, by using the red and blue buttons. You will also choose how much the producer should produce of their good at each time step. Your final score will be the total utility PLUS the total profit you generate. There will be shocks that happen throughout that will affect income, costs, and Supply and Demand. Play the game and post your best result (at the end of the game it will show your result in a pop-up), which you can screenshot into your doc. What strategy did you use to try to maximize your utility? What strategy did you use to try to maximize the producer profit?