Economics+Scenarios

The soda machine doesn’t have sales tax, the vendor probably does. The soda machine is usually freezing from the machine, so it doesn’t need ice. The convenience of walking a couple feet instead of ¼ a mile. Suppose that a series of hurricanes devastates the Bahamas. Most buildings are destroyed; there are many deaths; and all production is disrupted. Predict what would happen if, instead of sending old clothes and foreign aid packages, the United States handed out $50/day to any Bahamian, of any age, who showed proof of residency? If the US just gave every citizen $50 bucks, they might not be able to buy much with it because maybe a lot of produce rotted, or everything got ruined, what do you do then? Also if you only had $50 dollars then there is a lot of demand for products and there might not be supply. Also instead of spending the money on food or necessities the person might spend the money on items that are not needed. Why do movie theaters charge different people different prices for tickets, but charge everyone the same price for popcorn? Movie theatres charge different people different prices and the same for food because when you get in those specific people they might be willing to pay more than others. Identify another scenario in which price discrimination is practiced. One scenario in which price discrimination is at clubs and its ladies free night. Create a scenario where demand for a product may be high. IPods are in increasingly high demand lately. Create a scenario where demand for a product may be low. Boats and yachts aren’t in demand because there’s no point for some families to buy an expensive boat when the can barely afford to go to big bodies of water. Create a scenario where a business may increase the supply of a product. If there is a big demand for candy then toothpaste companies might increase their supply. Create a scenario where a business may decrease the supply of a product. If it’s very hot weather for a long period time, then jackets and coats will have to decrease their product. Answer the next 3 questions in the following manner: Choice a: Consequence a: Choice b: Consequence b: Micaela received $50 from her aunt for her birthday and decided to go to the mall to look over her choices. After visiting several stores, she has decided she could purchase blue jeans of her favorite brand, CDs from the music store, movie passes, or some food from the food court. Use newspaper ads, online resources, and your own experience to assign prices to these items to determine Micaela’s options. Then, determine the consequence of each choice. Choice a: If she chose to purchase CDs, she could get 3-5 CDs. Consequence: she couldn’t have more of a variety if she only bought CDs. Choice b: If she bought blue jeans of her favorite brand, she would only get about 1-2 pairs depending on what’s her favorite brand. Consequence b: Jeans can be very expensive so she wouldn’t get a lot of quantity just good quality. Choice c: If she bought the movie passes she would get about 5 movie passes Consequence c: she could either see a lot of movies or take a lot of friends to the movies which is nice, but you wouldn’t have anything left over only the memories. Alec planned to go skate boarding this afternoon with his friend Terry at 1:00 p.m. He has to be home to help his mother prepare dinner at 5:00. An hour ago, he was asked to mow the neighbor's lawn. The neighbor will pay extra if Alec will do the job this afternoon. What are Alec’s options, what are the consequences of each choice? Choice a: Alec could skate board with terry for three hours, and at four mow the neighbor’s lawn and still have enough time to prepare dinner. Consequence a: Will get less time to skate with Terry Choice b: Alec could also skate with Terry for 3 and a half hour to 4 hours and still be in time to prepare dinner, but not get the extra money for doing it today. Consequence b: will get less money than if he did it that afternoon Choice c: Skateboard with Terry the whole afternoon and be late for dinner and skip mowing the lawn. Choice c: He would get less money and he might make his mom angry and disappointed for being late and not helping prepare.

William and Cruz are in charge of the refreshments for the Burdick School movie. Their budget for snack food is $50. They are considering popcorn, pretzels, chips, nuts, and nachos. Use newspaper ads and your own experience to assign prices to these items. What are their options? What are the consequences of each choice? A large bag of popcorn kernels costs $10.00, Everything for nachos costs $25.00, nuts cost $5.00 per can, pretzels cost $15.00, and a variety pack of chips cost $15.00.