Your health club offers you “free” parking and unlimited use of its facilities seven days a week if you buy an annual membership for $3,650, to be paid at the time the membership is taken out. Otherwise, you buy daily passes for $10 per day for the use of the facilities, plus pay for your parking. Is your parking truly “free” if you buy the annual membership? Explain. A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030. Does this create an excess demand or excess supply situation? Explain how it will affect the price of chocolates in the future. The news report further goes on and states that adverse weather and fungal disease are partly to blame. Explain how that affects the supply curve. How will your answer in b. above change if innovation of disease resistant and higher yielding cocoa trees replace their traditional counterparts? Read the 2018 article entitled “How the Lamborghini Reventon Works” by John Fuller and then answer the following questions: Using the concepts of demand and supply, explain why the price of the Reventon is so high compared to other sports cars. If Lamborghini were to produce a much larger number of Reventons, what would happen to the price of the car? Explain, using the concepts of demand and supply. List factors that can cause an increase in the demand for Reventons.
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Your health club offers you “free” parking and unlimited use of its facilities seven days a week if you buy an annual membership for $3,650, to be paid at the time the membership is taken out. Otherwise, you buy daily passes for $10 per day for the use of the facilities, plus pay for your parking. Is your parking truly “free” if you buy the annual membership? Explain.
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A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030.
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Does this create an excess
demand orexcess supply situation? Explain how it will affect theprice of chocolates in the future. -
The news report further goes on and states that adverse weather and fungal disease are partly to blame. Explain how that affects the supply curve.
-
How will your answer in b. above change if innovation of disease resistant and higher yielding cocoa trees replace their traditional counterparts?
-
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Read the 2018 article entitled “How the Lamborghini Reventon Works” by John Fuller and then answer the following questions:
-
Using the concepts of demand and supply, explain why the price of the Reventon is so high compared to other sports cars.
-
If Lamborghini were to produce a much larger number of Reventons, what would happen to the price of the car? Explain, using the concepts of demand and supply.
-
List factors that can cause an increase in the demand for Reventons.
-
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