Question

1 A) Assume the price of a movie is $10. Jenna demands 2 movies per week, Sam demands 3 movies per week, and Jordan demands 8 movies per week. From this information we can conclude that

A) the market quantity demanded at a price of $10 is at least 13 movies per week.

B) Jordan is obviously more wealthy than either Sam or Jeanna.

C) Sam is irrational compared to Jenna or Jordan.

D) the movie industry is unprofitable.

Please explain the answer briefly!

1 B) In 2002, the U.S. Fish and Wildlife Service proposed banning imports of beluga caviar to protect
the beluga sturgeon in the Caspian and Black seas, whose sturgeon populations had fallen 90% in the
last two decades. The United States imports 60% of the world’s beluga caviar. On the world’s legal wholesale market, a kilogram of caviar costs an average of $500, and about $100 million worth is sold per year. What effect would the U.S. ban have on world prices and quantities? Would such a ban help protect the beluga sturgeon? (In 2005, the service decided not to ban imports.)

Answer 1

a) "A"

From the given data we can conclude that " the market quantity demanded at a price of $10 is at least 13 movies per week." the answer is "A".

b) No, it will not help the caviar as it will push the market underground and increase the price of the good. At a higher price the producer of the caviar will be making more profit and that will increase the quantity of caviar produced in the market.

IF the ban is enforced properly and there is no black market then the world price of the caviar will fall as US is one of the major consumer. At a lower price the quantity demand will increase. it will again be harmful for the caviar.