Principles of Microeconomics (EC151)

Paper 

Block 5, 2001

Purpose:  To apply the model of demand and supply to current events

Assignment:    Read the newspaper articles "The Babysitter Blues" and "Low-Cost Drugs Hazardous to Health Care" by John O'Sullivan (Chicago Sun-Times, April 11, 2000, p. 25)*. Summarize the content of each article in a paragraph or two and then use the model of demand and supply to explain the points the authors of each article make about the market(s) they are writing about.  

Format: The analysis of each article should be no longer than 2 typed and double-spaced pages in length. Graphs  must be clearly displayed and properly labeled. They should be attached on separate pages and referred to by number (Figure 1, Figure 2, etc) in the body of the paper. They do not count against the page limit.

Criteria for grade:

1. Coherent application of the model of demand and supply. Cause and effect relationships should be clear.
2. Command of the generic conventions of the English language.
3. Command of the terminology of economics.
4. Clear organization.

Honor Code:  You may consult your text and notes but may not discuss the assignment with other people.

Due Date: Monday, January 29, 9:00 A. M.

The latter article can be found on Academic Universe, available on the Tutt Library web site.