Unit 1 Assignment
Johnny Navarro Jr.
Problem #1: Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?
I am currently self-employed and deal with online sales on a daily basis. My business is based on sales at eBay and Amazon, I have multiple products that I buy wholesale and sell at retail price. I would like to choose the situation where orders are to be prioritized based on the…show more content…
How many natural diamonds are for sale at the moment? Note the wide array of sizes and prices of the diamonds. In what sense is there competition among the sellers in this market? How does that competition influence prices? In what sense is there competition among buyers? How does that competition influence prices? At the time I checked, there where 771002 listings under natural diamonds. As the number of the seller increases, the supply of these diamonds increases as well. McConnell, C., Brue, S., & Flynn, S. (2012) explains that ““A shift to the right, as from S 1 to S 2 in Figure 3.5 , signifies an increase in supply” (p. 53). This is exactly what would happen in this case because as the supply of the diamonds goes up , the curve will be shifted to the right, and will also decrease prices. As more members join eBay.com it means that there are more buyers and this will automatically increase the demand of these goods as well. Also explain on (p.50) on the McConnell text.
Problem #2 Part B: Describe what would happen if an outside agency determined the prices eBay could charge. It is very unlikely that this would occur, because members of eBay who sale products on the site usually if not always own the product being sold, therefore no one should be able to dictate the price at which owned goods could