List two opportunity costs a law student may incur in order attend law school. Do you think two different students will incur the same opportunity costs? Explain.
List two
Do you think two different students will incur the same opportunity costs?
Explain.
Assume that each of the markets below is initially in equilibrium. Then for each market below, suppose that the indicated scenario occurs. Illustrate the effect of each event in a diagram and indicate the effects on the
d. Market: Caffeinated beverages. Scenario: Starbucks opens a franchise in St. Lucia.
e. Market: Cigars Scenario: The government places a tax on cigar producers to discourage smoking coupled with the private sector running ad campaigns on the detrimental effects of smoking
f. Market: Ketchup. Scenario: Insects kill half the nation’s tomato crop
a. Why do suppliers want to create more
b. When the price of cellphone charges rises from $480 to $600 a month, the quantity demanded decreases from 204 million to 196 million subscribers. Calculate the price elasticity of demand for cellphone charges. Is the demand for elastic or inelastic? Would the demand for Flow charges be more elastic or less elastic than the demand for overall cellphone charges? Why?
c. When the price of rice falls from $100 to $80, the quantity demanded of rice increases from 10 to 25, the quantity demanded of potatoes decreases from 20 to 15, and the quantity demanded of chicken increases from 18 to 35.
i. Calculate the cross elasticity of demand for potatoes with respect to rice.
ii. Calculate the cross elasticity of demand for chicken with respect to rice.
iii. Of what use are these two cross elasticities of demand to the owner of a
business that sells potatoes and chicken?
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