Classifying a good as rival means   A. that the good is produced in a competitive market.   B. anyone who does not pay for the good cannot consume it.   C. that there is a shortage of the good.   D. that when one person consumes a unit of the good no one else can consume it.

Consider two types of cars: 1) Performance cars, which emphasize good performance (good mileage, towing capacity, horsepower, etc). 2) Luxury cars, which emphasize good looks Let's say that with the higher gas prices Americans care less about how their cars look and more about how they perform. We'd therefore expect to see in the market for performance cars and in the market for luxury cars. demand fall; demand rise demand rise; quantity demanded fall demand rise; demand fall O demand fall; quantity demanded rise

higher education as well. 2. If the State of California does not subsidize the University of California (i.e. let it become a private university fully funded by tuition), will the market for higher education produce too much, too little, or just the right amount of higher education? Use a graph to explain.

For each of the following questions identify which of the two types of consumer would likely be charged more for the good in question. Explain your perspective. 1. You may notice that there are no prices posted on the side of ice cream trucks. Who is likely to be charged more for ice cream: Children or Parents? Why? Parents are likely to be charged more for ice cream. 2. If you are flying on an airplane, you very likely paid a different price than most of the other people on your flight. Who is likely to be charged more for a ticket on an airplane: Businessmen or Vacationers? Why? Businessmen are likely to be charged more for a ticket on an airplane. 3. It costs the same to produce each unit of Microsoft Office that is sold, but students and business executives pay different prices. Who is likely to be charged more for Microsoft Office: Students or Business Executives? Why? Business Executives are likely to be charged more for Microsoft Office 4. Who is likely to be charged more for a…