1. Describe the broad facts about what, how, and for whom goods and services are produced.
2. Explain the idea of a tradeoff and think of three tradeoffs that you have made today
3. Explain why opportunity cost is the best forgone alternative and provide 3 examples of some opportunity costs that you have faced today.
4. Define the price elasticity of demand and show how it is calculated.
5. What makes the demand for some goods elastic and the demand for other goods inelastic?
6. Rain spoils the strawberry crop, the price rises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week.

a. Calculate the price elasticity of demand over this price range.

b. Describe the demand for strawberries.

7. How can external costs be eliminated by assigning property rights?