question 1

With reference to the Globe and Mail article "Reserve-based businesses go global as Indigenous entrepreneurs tap into e-commerce" and Section 8.7 in the textbook, explain the role of technological change and globalization on Indigenous businesses in Canada

Explains the role of technological change on Indigenous businesses in Canada.

Explains the role of globalization on Indigenous businesses in Canada.

question 2

With reference to "The Parable of the Seaside Inn", answer the following questions:

1. Why do some resort hotels stay open during the off-season when the bargain rates they charge do not cover their "full costs"?
2. Why do some resort hotels fall into disrepair even when they can attract enough customers to stay in business?
3. What will be the long run outcome for the hotel described in part b, if too few customers are attracted during the off-season for several years?

question 3

In the pharmaceutical industry, when a firm discovers a new drug, patent law gives the firm a monopoly to produce the drug until the patent runs out (20 years in many developed countries such as Canada). When the patent expires, other firms enter the market to produce and sell a generic drug which is chemically identical to the former monopolist's brand-name drug. For instance, acetaminophen is the generic name for the name brand pain reliever drug Tylenol.

1. With a graph, illustrate the profit maximizing quantity and price for Tylenol prior to the expiration of the patent.
2. With a new graph, illustrate how the quantity produced and price change after the patent expires and generic drugs are produced.
3. Even after patents expire and generic drugs are produced, the price of the name brand drug often remains higher. Why do you think this occurs?

question 4

Address the following questions, , using the concept of "cultural norms", as discussed in the video on the tragedy of the commons and "Aboriginal Perspectives on Sustainable Development". (Be sure to use your own words and quotation marks with referencing where applicable). How can Canadian society learn from Indigenous culture to deal with problems associated with common-property resources (tragedy of the commons)? Do you think that Canadian culture can evolve to adopt Indigenous perspectives on sustainability? Explain.

question 5

explain the concept of a Giffen good and summarize the research results of Jensen and Miller (2008) found in "The Search for Giffen Goods". Explain the significance of their research results and what it implies about demand curves.

question 6

Song's budget for coffee and pizza is $100 per month. The price of a cup of coffee is $5 and pizza is $10.

• Draw Song's budget constraint (label the budget constraint "a")
• What is the slope of Song's budget constraint?
• Song's monthly budget for coffee and pizza falls to $80. Illustrate the change on the graph in part a (label the budget constraint "b")
• Based on Song's new monthly budget of $80, the price of pizza falls to $5. Illustrate the change on the graph in a (label the budget constraint "c").

question 7

With reference to the table of "Real World Elasticities" and the determinants of elasticities discussed in this section, answer the following questions in a journal entry between

1. Why is the price elasticity of demand for eggs is much lower than for peanut butter?
2. Why does Mountain Dew have the highest elasticity?
3. Why is the price elasticity of demand for rice is much lower than for beef?

question 8

explain what goods Patti and Charlie have a comparative advantage in producing and how you know.