An economics professor and her husband went out to dinner and she observed one of her students drinking alcoholic beverages to excess. The professor knew the economics final exam was scheduled for the next morning. When the professor's husband realized that the student was in his wife’s economics class, he described the student’s behavior as irrational. The professor disagreed.

Under what conditions is behavior irrational according to the properties of consumer behavior discussed in the chapter? What situations could make the student's behavior rational?

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While at a discount shoe store, a customer asked the clerk, "I see that your shoes are ‘buy one, get one free­—limit one free pair per customer. Will you sell me one pair for half price?" The clerk answered, "I can't do that." When the customer started to leave the store, the clerk hastily offered, "However, I am authorized to give you a 40 percent discount on any pair of shoes in the store."

Assuming the consumer has $200 to spend on shoes (X) or all other goods (Y), and that all shoes cost $100 per pair, answer the following questions:

What is the consumer's opportunity set with the "buy one, get one free" deal and with a 50 percent discount?
Why was the 40 percent discount offered only after the consumer rejected the "buy one, get one free" deal and started to leave the store?
Why was the clerk willing to offer a "buy one, get one free" deal, but unwilling to sell a pair of shoes for half price?

Write each answer in no less than 200 words for a total of no less than 750 words.

The assignment is due by 11:55 p.m. EST on Sunday.

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In modules 1 and 2, we identified two broad groups of economic factors; households and firms. In our study of demand, we looked at households as consumer units affecting demand for goods and services in the product market. On the supply side of the product market are the economic (or business) firms that are the producers (and sellers) of goods and services.

When economic times get tough, some businesses experience downturns that lead to the loss of jobs or going out of business. However, there are some businesses that survive and often thrive as a result of economic struggles.

Drawing on what you have learned so far, what type of products or business would survive in a recession? Please discuss individual behavior theory in support of your choice (Expertsmind).

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Reference:

Expertsmind. (n.d.). Question regarding the behavior and production

Housing supply and demand is an example of the effects supply and demand can have on price elasticity. The most recent housing boom from 2000-2005 was not only a boom in housing prices, but also in-house construction.

Based on your readings, there are a number of factors that determine housing prices. Some are based on economic theories and some are based on more intangible factors. Describe the key economic factors which effect housing prices and how they are determined (HomeGuru).

You must first post your answer(s) before you can see the other students’ posts. Submit your initial post(s) early in the Module.

Post a minimum 250-word response to the following questions. Be sure to use in-text citations and a reference list to support your response.

Use the organization you have selected for the Final Project.

How would you describe its structure? Select two other types of structures and assess whether modification of the selected organization’s structure should be considered. Justify the reasons for your conclusion.

When you reply to your classmates' posts, be sure to focus on the arguments that are given. Do you agree or disagree, and why? Are there good reasons? Could the examples be clearer? Can you add your own example? Do you have a counter example?

You must first post your answer(s) before you can see the other students’ posts. Submit your initial post(s) early in the module.