Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 16, Problem 1.11P
To determine

What happens when the right of individual changes from one to another.

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Jamal has a very flexible summer job. He works every day but is allowed to take a day off anytime he wants. His friend Don suggests they take off work on Tuesday to go to the amusement park.  The admission charge for the amusement park is $15 per person, and it will cost them $5 each for gas and parking.  Jamal loves amusement parks and a day at the park is worth $40 to him.  However, Jamal also enjoys his job so much that he would actually be willing to pay $5 per day maximum to do it   a) If Jamal earns $10 if he works, what is the cost and benefit of going to the park? Should he go to the amusement park?
You have decided to start a snow-plowing business whereby you will offer to plow the driveways of your neighbours' homes after heavy snowfalls. You are well known by everybody in your neighbourhood, you have a plow for the front of your truck, and you think that your neighbours would rather hire you than someone they do not know. From your research, you know that homeowners are charged an average of $40 to plow their driveways after a heavy snowfall. Interestingly, a few years ago, your research tells you that homeowners were charged an average of $25 to plow their driveways after a heavy snowfall. The average price has gone up, which excites you. Apply your learning about supply and demand to this fact pattern to analyze possible reasons for the increase in price. Consider the five factors that may impact demand and the 6 factors that may impact supply. What questions do you want answered before committing to this business?
Levi offered to sell his car to Evan for $5,000 cash. Evan responded to Levi's offer by saying: "I will buy your car for $ 5,000. I will pay you $2, 500 now, and $2, 500 in one week's time." Have Levi and Evan formed a binding agreement? Explain.
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