Unit 1

Problem #1:

Comic Book Supply, Thousands | Comic Book Price |

100 | $4 |

50 | $8 |

25 | $16 |

12.5 | $32 |

In the above table and chart I used comic books as an example. Comic books are similar to baseball cards or any collectible item when there is a limited supply the prices go up. As you can see in the chart when there are more comic book supply the price stays relatively cheap while if the comic book supply goes down the price of the comic book could skyrocket. This could be because of ages, sales, or just the lack of production. Limited production always yields a higher price.

Problem #2A:

There is competition in the market on eBay for loose diamonds. You can see it in prices for similar diamond cut sizes. The prices tend to go down trying to go against competitors. Diamonds however can be very expensive items so while you want to oust your competitor you have to keep in mind that you still need to profit out of this item.

Problem #2B:

If outside agency determined the price that eBay could charge then items that are more than the determined amount would be taken down off the website and sold in other locations. When you start putting a cap on things it tends to hurt more than help. It will hurt those that want to sell their items at a higher price.

Problem #3:

One of the biggest issues that our country is dealing with today is the legalization of marijuana. Marijuana has been used in many different cases for positive result; the biggest of these cases is medical needs. There is no free market on this item because it is currently illegal in the United States. There may be ways to alleviate this issue however and help the United States in the long run.

Marijuana is illegal in the United States and can only be used in certain states for medical purchases. While the United States collects taxes on these medical purchases there are many more opportunities that they are missing out on. It is no secret that many people in the United...