Problem
A. Build-A-Bear stores had massive line ups of customers due to a sale. Do you think consumers have elastic or inelastic demand for Build-A-Bear? What is another example of a good or service with similar elasticity to Build-A-Bear? Would an economist likely advise Build-A-Bear to continue to offer lower prices, similar to these sales? Or would they advise them to raise prices and not offer sales? Make sure to use concepts from our course in your explanation.
B. Why have electric vehicle prices rapidly risen in the past year? What is a possible solution governments could implement to make electric vehicles cheaper to buy? Make sure to use concepts from our course in your explanation.