1. Morgan has to choose from several cameras located at Sammy's Camera in Los Angeles. Each is priced according to specific features: zoom lens, built-in tripod, "guitar-like" straps, the works! She noticed that certain models seem to fly off the shelves every time she visits the store and, what's more, they're pretty expensive to boot! She can't understand why...

Illustrate and explain what could be occurring here given the demand for these models.

2. Dorothea decides to take a "leisurely stroll" down HWY 247 one Saturday morning - a stress reliever after her Econ midterm. After getting to Slash X and realizing it's closed and, therefore, she cannot quench her thirst, she further discovers a bag of diamonds in her purse!

Jonathan Grant walks by and informs her he's willing to trade his five gallons of water for $20 per gallon; an amount she cannot pay, however. Although Jonathan understands the value of Diamonds on the world market, he lives in the desert and is aware that certain resources are more highly prized then others.

What's the dilemma here for both Dorothea and Jonathan?