Ziogas Answers For Exercise 1,2,3

Q1 & Q2
stock market: buying and selling of shares; market makers, investors, traders, speculators
hedgers; no
corn market: corn; producers, sellers and consumers; yes
commodity market: raw materials or primary products; speculators, directional margin
traders, spot/futures arbitrageurs, commodity price hedgers; no
capital goods market: financial securities, assets, bonds, derivatives; individuals, households,
corporations, governments; yes
fish market: fish; producers, sellers, consumers; yes
bond market: bonds; institutional investors, governments, traders, individuals; no
futures market futures contracts, index futures; hedgers, speculators, arbitrageurs, margin
traders; no
used cars market: used cars; sellers, buyers; yes
real estate market: land with all of its resources; developers, sellers , buyers; no
oil market: oil; banks commodity traders government agencies, financial engineers, fund
managers, ship owners, airlines, electricity utilities, chemical producers, industrial
conglomerates; no
street market: different goods by vendors; vendors(sellers), buyers (consumers); yes
coffee market: different types of coffee; corporations, consumers; yes
open air market: food and merchandise; producers, sellers, consumers; yes
market for teachers: teachers; schools, teachers; yes
telecommunications market: phones, communication etc.; users, corporations; no
Q3. 4 and 5
stock market: equal
corn market: unequal more buyers
commodity market: unequal more buyers
capital goods market: unequal more buyers
fish market: unequal more buyers
bond market: equal
futures market: equal?
used cars market: unequal there are more buyers
real estate market: unequal less sellers
housing market: unequal less sellers
oil market: unequal less sellers
street market: unequal less sellers
coffee market: unequal less sellers
open air market: unequal less sellers
teacher market: equal
telecommunication market: unequal less sellers
Q6
Yes i.e. Telecommunications market
Q7
Yes i.e. telecommunications market
Q8
Yes i.e. the open air markets, street markets
Q9
No, the sellers in each of these markets would have more information than the buyers
because they are the ones selling it meaning they know all the ‘ins and outs’ as well all the
logistics so the buyers are at a disadvantage that they don’t have the same information that
the sellers have.
Q10
The goals of each market are different obviously, but the main goal of each market is to sell
the buyers either goods or services.
Q11
Governments could put environmental taxes on the oil industry due to the societal changes
that are happening now. subsidies could be put on Wifi and other things that could help
online learning in countries where lock is still present.
Q1.
a. shifted to the right
b. movement along the curve (less quantity demanded)
c. movement along the curve (more quantity demanded)
Q2.
a. movement along the curve (less quantity demanded)
b. shifted to the left
c. shifted to the left
Q3
a. shifted to the right
b. shifted to the left
c. shifted to the right
An increase in the price of watermelons will lead to a decrease in quantity demanded. On a

diagram this implies that there will be a movement along of the demand curve.
If Coca Cola Co. decides to increase the price of Coca Cola, then the demand for Pepsi will
probably decrease and shift to the left, as the two products are considered substitutes.
Demand for used cars will decrease when incomes increase if consumers start looking into
better substitutes, such as new cars. In this case, used cars are considered inferior goods
and their demand curve will shift to the left. If pizza hamburgers become more expensive
then demand for soft drinks will probably decrease, as soft drinks and fast food are
complements.
If a government announces that in five months it will increase the tax on heating oil the one
may safely assume that the demand for heating oil will now increase, and, thus, the demand
curve shifts to the right. If the price of milk increases then quantity demanded will decrease
so, on a diagram, there is shift, but only a movement along the demand curve.

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Q1 & Q2

An increase in the price of watermelons will lead to a decrease in quantity demanded. On a

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