Can you please review the following document to ensure I'm on the correct path the concepts?

ECON 1901: Principles of Microeconomics

Module 1 - 4 Journal Entries

Module 1 Journal Entry #1

The opportunity cost of studying economics today.

As a mature student and working professional, my opportunity cost of studying economics today is time. The hour and a half of reading, viewing videos, and practicing questions could have been spent updating my CRM, strategizing on my next near-term project, or prospecting. All these work options would lead me closer to the next successful contract and thus have a monetary impact.

Journal Entry #2

Consider a simple economy that uses all its resources to produce two goods, guns, and butter. Suppose the economy is currently using all its resources to produce all guns and no butter. Using this example,

1. Make a table for this economy putting in values that illustrate increasing opportunity costs,

	A	B	C	D	E
Guns	10	9	7	4	0
Butter	0	1	2	3	4

1. Explain how and why increasing opportunity costs occur as the economy moves from producing all guns to all butter.

Switching production from all guns to butter uses progressively more resources. At point A, all the economy's resources are used to produce guns. All the machines and tools have been designed to produce guns and all the workers are skilled and experienced in gun production.

To move to points B and beyond, some resources need to be moved to a different task - butter production. As more butter needs to be produced, workers are needed to be re-trained and new capital equipment is needed, resulting in progressively increased costs as production moves from guns to butter.

Journal Entry #3

In less than 150 words, explain what goods Patti and Charlie have a comparative advantage in producing and how you know.

Patti has a comparative advantage in producing plates, whereas Charlie has a comparative advantage in producing cups. This is because Patti's opportunity cost for plates is 1 plate for 1/3 cup compared to Charlie's opportunity cost for 1 plate is 3 cups. 1/3 is obviously lower than 3 so this is Patti's comparative advantage for plates. The opposite holds for Charlie and cups - Charlie's opportunity cost for 1 cup is 1/3 plate compared to Patti's opportunity cost for 1 cup being 3 plates. Again 1/3 is lower than 3 so this is Charlie's comparative advantage for cups.

Module 2 Journal Entry #4

Think of a product whose demand or supply has been affected during the COVID-19 pandemic. Identify a determinant of either supply or demand that has changed resulting in a new equilibrium. Describe with an explanation in less than 200 words and a graph, illustrating the original equilibrium, a shift in one curve, and the new market equilibrium.

Disinfectant Wipes (Lysol) was a product whose demand soared at the onset of the pandemic and supply couldn't keep up. The determinant for disinfectant wipes would be a change in consumer preferences coupled with a change in the supply of materials. The changing consumer preferences is an easy one - heightened awareness of disinfecting all surfaces to minimize the risk of Covid-19 transmission resulted in exceedingly more demand than normal times. The change in the supply of materials is a function of the demand leading to a shortage of supply needed for production. Exacerbating the supply issue were transportation and logistics backlogs throughout global supply chains.

Price 14 outward shift in demand leads to a new equilibrium EZ g Supply 6 . . . 2 - O QUANTITY 2 10 12 1420 - A badat Coffee OVER $ 100 to norA suget constraint 5 under $ low constraint C 2 Pizeds " per monthil 20 Pizza $ 5 = 16 per month Pizza #10 = 10 per month Pizza = 8 per month Coffee $ 5 = 16 per month coffee 71 . 20 pr mouth Budget / month # lov Budget $80 $ 100 slope = 20 / 10 = 2 (opportunity Cost of pizza ) # 80 16 / 8 = 2 $ 5 pizza slope s 16/16