There is no word minimum for any answer; just provide a complete response.
Problem 1: What is the most important determinant of price elasticity of demand? Why is this so? Give an example of a firm that price discriminates for its product or service.
Problem 2: Give an example of the income effect and the substitution effect in regards to the supply of labor. What is the opportunity cost of work in this case?
Problem 3: Give a business or political example of the prisoner's dilemma from the field of game theory. What is the payoff for each participant in your example?
Problem 4: Choose one of the three types of market failure and give a real world example of it. Do you believe the government has the ability to solve this problem?
Problem 5: Define the concept of comparative advantage. How can a country gain or lose its comparative advantage in the production of a good?