eco homework 4

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  1. During the hot summer months, more people want lemonade because it is refreshing. Accordingly, more lemonade stands pop up during the summer months. What happens to the equilibrium price and equilibrium quantity in the lemonade market during the summer? Provide a short explanation and create a supply and demand model to illustrate your points.

2. Compare and contrast the following sets of words:
  normal good versus inferior good
b.  substitute good versus complementary good
c.  a supply curve versus a supply schedule
d.  the law of demand versus the law of supply

3. Without using a graph, explain the difference between a movement along a demand curve and a shift in the entire demand curve.

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