ECONOMICS FOR BUSINESS

1. Which are the advantages and disadvantages of a country to have commercial relations with other countries?

Public good or common resource?

Does the airline industry produce a public good or common resource? Are the goods or resources rival, excludable, or neither? Explain.

Price Elasticity

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to show the work you used to support your answer.

Economic Systems Questions

Economic Systems Questions. See attached file for full problem description.

Shift in labor

Since the September 11th attack there has been an increase in the demand for security personnel: police, air marshals, airport security, etc. How has the higher demand affected the equilibrium wage? In which direction do you think the labor supply and demand shifted? I personally see a shift in both directions. Security personnel the shift would have been to the right however for airline personnel a shift to the left since there were less travelers. As for the airlines themselves experienced great financial set backs and layoffs.