Here’s the assignment:
1. Using supply and demand analysis explain what would happen in the market for SUVs if the relative price of gasoline increases.
2. How does rent control on apartments distort the allocation of resources?
3. Using your knowledge of consumer and producer surplus, explain why economists say that competitive markets are efficient.
4. Using examples, explain the impact of externalities on the markets.
5. How can elasticities be used to improve business or firm performance?
6. Under what elasticity conditions would consumers protest a higher sales tax for cigarettes? Why or why not?
7. SCAVENGER HUNT: Find some online links/sites to useful videos on the chapters covered. There’s no limit to the number, as long as they are good videos
discussing Demand and Supply, and Elasicities–the more the better. Please listen to them before you post and write a brief descriiption of the content.