Economic is everywhere!

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Please do 2 examples from the “real” world that illustrate–or challenge–our class discussions. You can post news headlines, examples from friends or family, or examples from other classes or books you might be reading. You can also post cartoons or songs with lyrics that you believe illustrate an economic principle.

The news headlines or examples must be recent (within a week or two).

  1. Provide information about your example.
  2. Write an exam question–either multiple choice or short answer.
  3. Answer your exam question.

 

Finally, feel free to respond to 2 classmate’s post. Substantive responses (more than “I agree” or “I disagree”) that provide another relevant example OR correct an error in you classmate’s analysis will earn up to 2 bonus points.

 

Classmates examples:

1- An example of trade in my life this week is from the website Poshmark. Poshmark is a website where you can post and sell items of clothing or accessories you no longer want, and buy other users items. Yesterday I posted two hats for sale that I didn’t want or need. Today I sold both hats to 1 user. Since trade moves goods from people who value something less to people who value the good more. I was able to trade these hats which had little value to me for money which is of higher value to me than the hats.

 

2- I was at the Disney Store last week, and my son picked up a few toys and based on the prices on the tags, the total of the toys were about $70 and I valued these toys at this price. However, the cashier later told me there was a discount on these toys and I did not see the sign of the discount before I decided to purchase the products. However, because of the discount, I ended up paying only about $40.

Question:

How much consumer surplus did I earn in this case?

A- Zero

B- $30

C- $40

The correct answer is B, which is $30. I valued the products at $70, but I ended up paying $40 because of the discount so I got $30 in consumer surplus.

 

please read instructions carefully! do the 2 examples on a separate word document! same goes to the classmates responds..

 

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