Downtown Music Stores Squeezed out of
Business
Music retailing is changing: Sony Music and
Amazon are selling online, discount stores are
selling at low prices, and downtown music
re tailers are all struggling.
Source: The Economist , January 20, 2007
a. Draw the PPF curves for downtown music
retailers and online music retailers before and
after the Internet became available.
b. Draw the marginal cost and marginal benefit curves for downtown music retailers and
online music retailers before and after the
Internet became available.
c. Explain how changes in production possibilities, preferences, or both have changed the way
in which recorded music is retailed.
Use the following news clip to work Problems 16
and 17.
Malaria Eradication Back on the Table
In response to the Gates Malaria Forum in October
2007, countries are debating the pros and cons of
eradication. Dr. Arata Kochi of the World Health
Organization believes that with enough money
malaria cases could be cut by 90 percent, but it
would be very expensive to eliminate the remaining
10 percent of cases, so countries should not strive to
eradicate malaria.
Source: The New York Times , March 4, 2008