1. Suppose two young people graduate from high school. One starts working immediately and earns $1500 per month. The other continues his education for 5 years, costing him $18,000 per year. After graduation, the second student earns $3,000 per month at his new job.

How long will it take the second student to make up the cost of his education and surpass the first student financially?

After this calculation, explain why considering explicit costs alone is not an accurate representation of the reality of economic costs.

Also Read: Online Economics Assignment Help by Experts

2. Calculate and explain each of the type for the following elasticities :

Price increases from $10 to $11 quantity demanded moves from 100 to 90.

Price increases from $10 to $11 quantity supplied moves from 90 to 100.

Price of A increases from $2 to $2.1, quantity demanded of B moves from 10 to 11.

Price of A increases from $2 to $2.1, quantity demanded of B moves from 11 to 10.

3. The table below shows the amount of demand and supply for coffee.

What is the equilibrium price and quantity in the market? Explain

Now, imagine that because of excellent weather conditions in producing countries, the supply increases by 15 tons at each price point.

Calculate the new equilibrium price and quantity and explain why the direction of the price shift makes intuitive sense.

4. Explain why increasing the number of employees increases output first rapidly and then more slowly until it stops being productive. Use the economic concepts of marginal and total production in an example to further illustrate your explanation.

Also Checkout: Economics Assignment Sample

5. Recently, Ukraine’s neighbors in the European Union have closed their borders to prevent wheat from entering their domestic markets.

Explain what impact the EU grain import support agreement has had in terms of supply and demand to justify these border prevention actions.

Relate this explanation to the concept of a floor price for European grain discussed in class.