Q1. Find out the price of something in the 1950s-a house, car, gasoline, or something else that interests you. Note the item, the price, also the year. Compare it to the cost of the same item today. Are you surprised by the price difference?
Illustrate what social perceptions do you think prevent us from keeping an accurate perspective on price indexes over the years?
Q2. The demand for milk is more elastic than the demand for water. Assume the government levies an equivalent tax on milk also water. The deadweight loss would be larger in the market for.