Q1. You have tickets for a concert tonight that you have been looking forward to. Your mother, who is helping you pay your tuition, phones and says that it's very important to her that you come to Grandma's birthday party tonight. Using the law of demand, explain your decision - the concert or Grandma's party? [hint: think about opportunity cost]
Q2. A flower sell for about $40 a bouquet most of the year, and at that price, worldwide sales are 6 million bouquets per month. Every February, the price of flowers doubles to $80 a bouquet, but the quantity of flowers demanded and sold also increases, to 24 million bouquets per month. The cost of producing flowers doesn't change throughout the year. Explain what else is going on that saves the law of demand.
Q3. If you could spend the next hour studying economics or working at your part-time job, which pays $11 an hour, what is your personal opportunity cost, in dollars, of studying?