Unit 3 Discussion

1. You are the curator of a butterfly sanctuary.  The sanctuary is running low on funds, so you decide to increase revenue.  What options do you have to consider?  Should you raise or lower the price of admission?  Explain your reasoning in terms of demand and elasticity. 

2.  Using supply and demand diagrams, show the effect of the following events on the market for sweatshirts.

1. A hurricane in South Carolina damages the cotton crop.
2. The price of leather jackets falls.
3. All colleges require morning exercise in appropriate attire.
4. New knitting machines are invented.