Question

1.Ed Sheeran, a British pop and rock singer, is scheduled to perform a concert on September 14, 2018, at 7 p.m. In Gillette Stadium in Foxboro, MA. The ticket price ranges are from $62 to $8,668. Based on your knowledge of the D and S model for the music entertainment market, briefly explain whether these price ranges truly reflect the market prices. Why or why not?

2.Why is the study of economics an important part of social science? Give an example from the real world.

3.How do you measure the efficiency of resource allocation? Give an example for a real-world application of measuring the efficiency of resource allocation.

4.Suppose the geographical tension in the Arab states in the Middle East and Persian Gulf region has severely disrupted oil exports to the United States. Illustrate and explain in your own words the effect on the price of natural gas and the quantity demanded equal to quantity supplied in the US market due to this decline in the supply of petroleum (fossil Fuel) from the Middle East and the Persian Gulf. Hint: Please assume that petroleum and natural gas are substitutes.

5.If the real wage rate (adjusted for inflation) declines for the jobs for high school graduates, would the true opportunity cost of attending college or spending for higher education decline? Give an example.

Answer the following question appropriately and carefully. I will give you a thumps up.

Answer 1