Law of Demand

Assignment 1: Law of Demand

The Law of Demand states that the demand for a product is inversely related to the price of such product. Therefore, the demand for a product is considered downward sloping. This implies that quantity demanded increases when price decreases. Is this always true?

In your answer, provide at least three examples of products for which quantity demanded remains unchanged regardless of a change in price. Also, provide at least three examples of products for which quantity demanded increases in response to an increase in price. Also, include a discussion of the factors of demand that may account for such examples and justify your conclusions.

By Friday, January 18, 2013, post your initial discussion response in the M2: Assignment 1 Discussion Area

Assignment 2: What is Gross Domestic Product?

Go to the following website:
www.bea.gov/index.htm

Based on the information contained on the website above, answer the following questions:

  1. What was Real GDP for 2009?
    1. What does GDP tell us?
    2. How did GDP change from 2008?
    3. What caused these changes?
  2. What was GNP for 2009?
    1. What is the difference between GDP and GNP?
    2. How did GNP change from 2008?
    3. What caused these changes?
  3. What was National Income (NI) for 2008?
    1. What does National Income tell us?
    2. What is the difference between GNP and NI?
    3. What caused these changes?
  4. What was Disposable Income (DI) for 2009?
    1. What does Disposable Income consist of?
    2. How did DI change from 2008?
    3. What caused these changes?
  5. What was GDP in 2008 (sometimes called GSP) for your state?

Submit your responses in an Microsoft Word document in a short answer/worksheet format.

By Wednesday, January 23, 2013, submit your responses to the appropriate M2: Assignment 2 Dropbox.

The following chapters from the assigned textbook, Macroeconomics: