Economics+Questions

Economics Questions and Scenarios Answer each question

1. What is the difference in the cost of buying a coke with no ice from the machine in the mall entryway and buying one with ice from the vendor at the other end of the mall (1⁄4 mile away) if the price of both cokes is 75¢? 2. Suppose that a series of hurricanes devastates the Bahamas. Most buildings are destroyed; there are many deaths; and all production is disrupted. Predict what would happen if, instead of sending old clothes and foreign aid packages, the United States handed out $50/day to any Bahamian, of any age, who showed proof of residency? 3. Why do movie theaters charge different people different prices for tickets, but charge everyone the same price for popcorn? a. Identify another scenario in which price discrimination is practiced. 4. Create a scenario where demand for a product may be high. 5. Create a scenario where demand for a product may be low. 6. Create a scenario where a business may increase the supply of a product. 7. Create a scenario where a business may decrease the supply of a product.

Answer the next 3 questions in the following manner: Choice a: Consequence a:

Choice b: Consequence b: 8. Micaela received $50 from her aunt for her birthday and decided to go to the mall to look over her choices. After visiting several stores, she has decided she could purchase blue jeans of her favorite brand, CDs from the music store, movie passes, or some food from the food court. Use newspaper ads, online resources, and your own experience to assign prices to these items to determine Micaela’s options. Then, determine the consequence of each choice. 9. Alec planned to go skate boarding this afternoon with his friend Terry at 1:00 p.m. He has to be home to help his mother prepare dinner at 5:00. An hour ago, he was asked to mow the neighbor's lawn. The neighbor will pay extra if Alec will do the job this afternoon. What are Alec’s options, what are the consequences of each choice? 10. William and Cruz are in charge of the refreshments for the Burdick School movie. Their budget for snack food is $50. They are considering popcorn, pretzels, chips, nuts, and nachos. Use newspaper ads and your own experience to assign prices to these items. What are their options? What are the consequences of each choice?