Essay Question

A)

Explain why both nations with high living standards and nations with low living standards face the problem of scarcity. If you won $1 million in a lottery, would you escape the scarcity problem?

B)

From Opportunity cost point of view.Although attending college is expensive, time-consuming, and requires effort, but people decide to attend college. Explain why?

C)

There is a shortage of college basketball and football tickets for some games, and a surplus occurs for other games. Why do shortages and surpluses exist for different games?

D)

A gasoline station very near a professional football stadium parks cars on its lot to make money on game days.Last year it charged $4.00 per car and parked 1000 cars.This year it raised the parking price to $5.00 and parked 850 cars.Did the station owner make a good economic decision in raising the parking prices from one year to the next?Explain.

E)

What is the relation between price elasticity of demand (PED) and Revenue (TR and MR)? Why is it likely that a firm would sell at a price and quantity where its demand curve is price elastic?