Econ

1) a. If we do not take hold scarce elections, leave we call for a law of demand? Will we observe terms rationing for goods?

The law of demand states the relationship between sum demanded and worth, showing that the lower the price, the higher the demand and vice versa. If we do not deem scarce resources, thither will dumb be a law of demand, because all humans atomic number 18 greedy. This means that we will always want more of what is there and demand always initially exceeds supply, but supply will then catch up, and over time will flag behind again, although this ?bottlenecking is always temporary. This can be seen in fictional character optic cables, as they catapulted the amount of information able to be transferred by 100 times at once, however, society fluent demands bigger and faster amounts.

With this, we will still observe price rationing, as we are so greedy that we want to have as much m superstary as humanly possible, unless the resource that is not scarce is actually our money.

b. The Council of a large university, subsequently considering two sites for public figureing a new sporting complex, chose to build on a plot of land the university already possess rather than on another tract of land that the university would have to buy.



The reason given was that the chosen site lowered the hail of the sporting complex because the land was free, whereas the other site would make up over $3 million. Analyse this reasoning.

This example is an example of an chance cost. They could have spent $3 million on a block of land that could have possibly been better than the one they own, or they could use that $3 million dollars on near other part of the university. Using the free land is a good idea because it frees up money that could be use to build and improve the sporting facilities, or could be place into moreimportant parts of the university. Overall, using the free land will provide maximum benefit for students in the long run, as the $3 million can be used on something else in the university....If you want to get a full essay, order it on our website: Orderessay



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