ECON 3041 Managerial Economics

Table of Contents


1.Discuss the American pricing dilemma. Use the concepts of scarcity or value to explain why Americans would prefer to pay more for renewable resources (water) than for non-renewable resources (gas).

2. What factors are responsible for consumers willing to pay more for bottled water?

3. What does it mean to pay for a lifestyle?

4. What factors are responsible for water changing from a “free” commodity to a scarce commodity that commands a high price?

5.What is causing the recent rise in gasoline prices? Please explain.

6.Do you think gasoline will remain a political commodity? Do you think the balance of economic power will shift from those who do not have oil to those who do? Please explain.

7.What’s the difference between water and gasoline?

8. How much of the pricing paradox can be explained by politics, lifestyle, and economics?



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