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Assignment Requirements
Tina grew up in Campbell River and started her studies at VIU this fall. To help save money she decided to live at home. Discuss the opportunity costs of her decision on choice of residence.
Draw the marginal benefit curve for the consumption of candy and explain the shape that you chose to represent.
For each of the following state the effect each scenario would likely have on demand or quantity of lumber demanded.
The American housing market is starting to rebound and the number of new homes being built skyrockets.
The cost of logging permits falls leading to a lower price for lumber.
The cost of steel and concrete skyrockets.
The show Canada’s Handyman Challenge has inspired many Canadians to pick up wood working as a hobby.
The wages of loggers is increased leading to a higher price for lumber.
The Nanaimo Swim Center is pondering raising the price of admission from $6 to $6.60 to increase revenues. The managers survey the community and estimate that the number of paid admissions would fall by 20 percent. Calculate the price elasticity of demand using the point formula and state whether this fee increase would increase or decrease revenues.
The following equations describe demand supply and supply for kayaks in Nanaimo:
Supply = 3P-300
Demand = 3700-2P
Using this information draw the supply and demand curves and calculate the equilibrium quantity and price for kayaks in Nanaimo.
Discuss and show graphically how the supply and quantity of tomatoes would change due to the following events:
Farm workers organize a union and bargain for a $2/hr wage increase.
New innovations in hydroponics and greenhouses make it cheaper and easier to produce tomatoes year-round.
Tomatoes become much more popular and everyday usage expands greatly.
The late summer and early fall is marked by frequent rains and extremely cold nights.
The cost of fertilizer falls sharply.
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