ECON 2030 : Lab Questions Test 1
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Econ 2030 lab questions test 1: suppose rational decision make janet faces a choice: she can either see kim carson or beth. Tickets to see kim are each while tickets to see beth are free. Everything held constant, what is the opportunity cost of seeing kim if she has not purchased a ticket yet: plus expected pleasure of beth in concert. What if she already purchased non-refundable ticket, then opportunity cost becomes: the becomes a sunk cost, essentially both concerts become equal cost. Thus we say that there is a ___ of the good and over time, the price will ___: surplus, decrease, suppose celery is a normal good. Which side of the celery market is directly affected by this increase: buyers, suppose celery is a normal good. How will buyer behavior change: buyers will buy more, suppose celery is a normal good. Suppose further that incomes in the country are increasing.
