illustrate and describe the effect on both the
demand and supply curves and on equilibrium price and quantity.

Surveys indicate that Americans are becoming more and more
dependent on over the counter medications such as Advil. For each of
the following two scenarios, illustrate and describe the effect on both the
demand and supply curves and on equilibrium price and quantity. Your
answer should DESCRIBE in words and ILLUSTRATE IN GRAPHS.
(a) Rise in the price of an important ingredient used as a raw material in
making Advil.
(b) A recent publication in Harvard Medical Journal has suggested that
persistent use of such medicine may substantially increase the risk of
Melanoma.
2. Define “market clearing price”. Why is the market clearing price often
described as an equilibrium situation? Support your answer with graphs.
**This question requires you to upload your answer as attachment .
Q2:
Discuss the Bowles, Edwards, and Roosevelt three-dimensional approach
to studying political economy. List and define each dimension. What are
the values of their approach and how can they be achieved? How does
this approach draw on ideas from Smith, Marx, Keynes, Schumpeter,
Coase and Sen? Use relevant examples where possible.
Q3: (resource: understanding capitalism_chapter7-SSA)
a) Define social structures of accumulation and list the four important
relationships the “rules of the game” influence and are influenced by.
b) Use all four stages of American capitalism to describe how the capitallabor
relationship has evolved under different social structures of
accumulation.
c) Give a real life example (NOT FROM THE TEXTBOOK) of how the
command element of the three-dimensional approach to economics
exists in capital-labor relationships in the current transnational phase of
American capitalism (hint: be specific, think of a specific company or
corporation and their labor practices).
Q4: (resource- understanding capitalism_class relationship)
Define “class” and “class relationships” and describe the four aspects of
the concept of class that are important. How are the concepts of class
relationships and economic systems related? Identify the principle
income flows for capitalists and workers; do these differences in income
flows change the constraints and/or preferences of each group? Discuss
specific examples, such as access to political representation or
educational opportunity.