Common Sense Economics 2015-2016

Supplemental reading: Demand, Supply, and Adjustments to Dynamic Change Plus the Economics of Price Controls

1. After completing Module 02, begin Module Supplement A by offering your first thoughts to one (1) of the questions in the next module.  No preparation is needed, and you automatically earn 1 point.
2. After completing Module Supplement A, locate and build out your pre-learning thoughts to earn up to an additional 4 points.  Hit reply to your original post, and expand your initial answer to include what you have learned. Include page references from Common Sense Economics (2010) and the supplemental reading to support your work to earn full credit.
3. The questions follow. (Please copy and paste the question into your reply.  It makes grading easier, thanks!)

• Water is essential for life, while diamonds are merely visually attractive. Why is the price of water so low relative to the price of diamonds?
• If government substantially expands the availability of low-interest loans to college students, what will happen to the demand for and price of a college education?
• "When property rights are well defined and competitive firms freely enter and exit markets, market prices will tend to direct producers toward production of goods and services that consumers value more highly than the resources required for their production.” Explain why you either agree or disagree with this statement.