Question 1
As we expected preventive measures to be taken by local and national authorities to prevent the spread of the COVID-19, the demand for surface and hand sanitizers skyrocketed. How did COVID-19 impact the price elasticity of surface and hand sanitizers, and could a rational (profit maximizer) surface and hand sanitizers producer or seller react to that?
Question 2
Briefly discuss how greater consumption of a good affects utility. Use the consumption of a given good or service to support your discussion.
Question 3
How is the Concept of Diminishing Marginal Product (returns) is related to the concept of economies of scale?
Question 4
What are some of the advantages of a perfectly competitive market in an economy? Use one specific business to describe a clear example of your personal observation of perfect competition.
