Changes

'''Gallons Demand Price/gallon Supply Price/gallon

'''Gallons Demand Price/gallon Supply Price/gallon

10 $2.50 $.50

<br>'''10 $2.50 $.50'''

20 $2 $.75

<br>'''20 $2 $.75'''

30 $1 $1

<br>'''30 $1 $1'''

40 $.75 $1.50'''

<br>'''40 $.75 $1.50'''

'''(A) What is the price and overall quantity of gas sold each week?'''

'''(A) What is the price and overall quantity of gas sold each week?'''

Scalping is a form of free market activity.  If there are willing buyers and sellers for the tickets, then why interfere with these sales?  Scalping is illegal in New Jersey, but still happens illegally.

Scalping is a form of free market activity.  If there are willing buyers and sellers for the tickets, then why interfere with these sales?  Scalping is illegal in New Jersey, but still happens illegally.

'''Honors''':  Write an essay of about 300 words total on one or more of the following topics:

'''Honors''':  '''Write an essay of about 300 words total on one or more of the following topics:'''

<br>7. Should government regulations require and monitor honest and full disclosure of information by sellers to buyers?

'''7. Should government regulations require and monitor honest and full disclosure of information by sellers to buyers?'''

'''For the buyer to make informed decisions, he must have information.  Even "buyer beware" ([[caveat emptor]]) assumes a buyer who can find information.  The seller has the information, and regulations requiring it to tell the buyer seem helpful to free enterprise.'''

For the buyer to make informed decisions, he must have information.  Even "buyer beware" ([[caveat emptor]]) assumes a buyer who can find information.  The seller has the information, and regulations requiring it to tell the buyer seem helpful to free enterprise.

<br>8. Should price discrimination be illegal?

'''8. Should price discrimination be illegal?'''

'''For banning price discrimination:  a common price encourages more economic activity.'''

For banning price discrimination:  a common price encourages more economic activity.

'''For allowing price discrimination: if buyers and sellers are willing to exchange at different prices, doesn't this maximize overall benefit?'''

For allowing price discrimination: if buyers and sellers are willing to exchange at different prices, doesn't this maximize overall benefit?

<br>9. What is an [[economic]] incentive for excluding homeschooled athletes from high school sports?  Should that be legal?

'''9. What is an [[economic]] incentive for excluding homeschooled athletes from high school sports?  Should that be legal?'''

'''By banning homeschoolers from sports, public and private schools are encouraging students to enroll in their schools.  That brings them more money.'''

By banning homeschoolers from sports, public and private schools are encouraging students to enroll in their schools.  That brings them more money.

<br>10.  Describe your view of if or how government should regulate medical prices.  

'''10.  Describe your view of if or how government should regulate medical prices.'''

'''It shouldn't.  Price controls, as illustrated by the gasoline problem above, results in shortages.'''

It shouldn't.  Price controls, as illustrated by the gasoline problem above, results in shortages.

<br>11. “Economic theory of law and the public domain - When is Piracy Economically Desirable?” See http://lexnet.bravepages.com/media1.html

'''11. “Economic theory of law and the public domain - When is Piracy Economically Desirable?” See http://lexnet.bravepages.com/media1.html'''

'''Piracy of information can increase market activity.  Napster caused much additional traffic on the internet in the late 1990s, and this helped the dot-com boom.  But copyright violations are illegal in order to encourage the creation of new works.  It is a delicate policy balance between promoting market activity now and promoting creative works for future benefit.'''

Piracy of information can increase market activity.  Napster caused much additional traffic on the internet in the late 1990s, and this helped the dot-com boom.  But copyright violations are illegal in order to encourage the creation of new works.  It is a delicate policy balance between promoting market activity now and promoting creative works for future benefit.

[[Category:Economics lectures]]

[[Category:Economics lectures]]

{{DEFAULTSORT: Economics Model Answers 02}}

{{DEFAULTSORT:Economics Model Answers 02}}