Annette Martinez

Economics 2302

November 28, 2011

Economics is Everywhere
10 vignettes
1.8
Student believe that teachers cannot teach well and also be good researchers. They believe that opportunity cost would kick in allowing a teacher to be good at teaching but not a good researcher. And if the teacher is a good researcher then they aren’t good at teaching. The author is saying that the trade off that happens depends on the teacher and how much they have learned or wanted to learn. The more they learned the better at teaching they will be and as a researcher also. The less they learned they will end up being a mediocre teacher and the same as a researcher. Production Possibility Curve for a Professor/ Researcher

2.8 The consumers preferences can shift the demand curve depending on whose drug they would prefer more. Also the price, if one drug seller sells his drugs at a higher price of course the consumer is going to go to the cheaper drug seller to get more for the price. The consumers income will also shift the demand curve depending on how much money the consumer is able to waste on drugs at the moment. Also the expectations of future prices if the consumer hears that the drug prices are going to rise tomorrow well then he will buy much more today causing a shift in the demand curve. Also because of the two drug dealers they would be substitutes of each other. If one decides to raise his price the consumer will naturally buy from the other causing the demand curve to shift out for the drug dealer who is selling his drugs at a cheaper price.

3.10 Because there aren’t enough cab drivers at night the demand for them exceeds the supply.
With the government increasing the fare by 30% it had shifted the supply of the cab drivers out so far that the demand for them isn’t there anymore also because of the increased fare at