Heather's Homework

Because of the convenience of using Uber, I would expect consumers to prefer it over traditional taxis. Even if they didn't have a strong preference, there would be an increase in the availability of transportation. So the supply of transportation shifts to the right. When demand for taxis decreases, the demand curve shifts to the left. This creates a surplus, so prices fall towards the equilibrium. When I worked a snow-cone and hot dog booth one summer for a weekend festival, during the last hour of the last day we would offer buy-two-get-one-free deals. Prices decreased when demand decreased. Because the product on hand could not be saved for future sales, it was better to capture a smaller profit margin than no sale at all.  AirBnB increases the supply of rooms to rent beyond just the typical hotels, which  shifts the supply  curve to the right. I expect that because it is such a popular metro ,  prices may stay stable because  consumers will demand ...

1. There several issues in the buy local argument. One issue is that even if the finished product was made down the street, many factors of production likely came from elsewhere, so it is not 100% locally made. Another issue is that if we did rely on only local producers, the markets would shrink and there would be less variety because it would take people longer to do things. Trying to shop 100% local means that you lose the benefits of specialization that come with global trade. 2. I will buy local when it gives me added value...for example, more convenience, a more creative or unique product, or better sustainability practices. 3. A strength of buying local that is not mentioned in the video is that transportation costs are lower because products do not have to travel as far. In turn, this has a smaller impact on the environment. Plus, it is easier to know what actually goes into the product since you could probably meet the person who is in charge of making it. 4. In o...

1. The use of a very simplified model of the economy such as the production possibilities frontier helps explain the essence of a concept. For this particular model, it shows the combinations of outputs that an economy could choose to produce with its limited resources. It helped me see the trade off in opportunity cost. For example, make two toasters or one microwave. At a certain 2. I've often heard people saying that the minimum wage should be raised, or that there should be rent controls. These are both normative statements because they talk about actions that should be taken, rather than describe things as they actually are. It is important to make a distinction because one is objective and one is subjective. While everyone has a personal perspective and ideals, most normative statements have unintended consequences.

1. Because incentives influence people's behavior, I can see how legislator's actions influence society in a way beyond just making something legal or illegal. For example, tax credits can influence whether people pursue continued education or having more children. 2. Based on the concepts in this chapter, I'd like to know more about the ways those in power interfere with the economy. Recent examples such as tariffs, the Fed adjusting rates, and the intense fluctuations in the stock market are of concern to me.