Part 1
Scarcity is the starting point for studying economics. Resources are limited while human wants are unlimited. Prior to beginning work on this discussion, read Chelsea Follett’s article, Are Humans Prepared to Overcome Resource Scarcity in the Future? (Links to an external site.), as well as Chapter 1 Section 1.2 in your textbook, and respond to the following:
- Explain what resources are.
- Evaluate why current resource scarcity is problematic.
- What future problems would result from scarce resources?
- Do you agree or disagree, and why, with Chelsea Follett about overcoming future resource scarcity?
- Recommend how to overcome present and future resource scarcity.
Your initial post should be a minimum of 300 words.
Part 2
A change in quantity demanded (or a movement along the demand curve) is caused by a change in its own price while a change in demand (or a shift of the demand curve) is caused by a change in nonprice determinants that include changes in consumers’ income, taste or preference, price of other goods, expected future price, etcetera. Respond to the following:
- If Coke’s price increases, what will happen to the demand or quantity demanded for Pepsi, all other things being equal?
- Explain whether it is a movement along the demand curve or a shift of the demand curve.
- If Coca-Cola develops a new technology that makes Coke tastier, what will happen to the supply curve and demand curve for Coke?
- Is the demand (curve or schedule) for Coke or Pepsi seasonally different?
- What is the relationship between Coke and Pepsi? Do they have the same demand curve or are they different? Explain your reasoning.
Your initial post should be a minimum of 300 words.
