Analyze the effects of changes in demand and supply on market equilibrium.

Section 1: Factors Affecting Equilibrium Price and Quantity

Is the price elasticity of demand for gasoline more elastic over a shorter or a longer period of time? Explain.

Is the price elasticity of supply, in general, more elastic over a shorter or a longer period of time? Explain.

Section 2: Shape of the Labor Supply Curve

Why is the supply curve for labor usually upward sloping? Explain.