Economics Assignment

Price: $5 USD

Question description

# 5 Micro

Assume that you were ready to buy a custom tailored Dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100.

  When you arrive at the tailor shop, the posted price for the item is $150. Discuss how this scenario relates to producer and consumer surplus and how such surpluses, if any, affect buying and manufacturing decisions

  Discuss any recent purchases you have made and for which you feel that a similar rational seemed to be at work.

# 6 Micro

Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from both chapters seen this unit such as government intervention, inefficiencies, price elasticity, etc. in your answer.

In the first case, assume the medication is for a life threatening illness for which your child has been diagnosed.

In a second case, assume the medication is for an improved quality of life issue, such as achieving a healthy weight.

What are the impacts that the pharmaceutical company that makes the medications in question will experience? How will that affect the pharmaceutical company’s production decisions? What about its decisions to conduct further research into new drugs?

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(Top Tutor) Daniel C.
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