Micro Economics

1. Other things being equal, what will happen to automaker's profits if they are able to sell more vehicles using battery packs and thereby scale up battery production?

2. Why do you presume that some automakers support the payment of government subsidies to consumers who purchase hybrid and all-electric passenger vehicles?

3. If input prices had increased as firms entered the lithium industry in response to rising demand, what would have been the shape of the long-run supply curve?

4. If the market demand for lithium were to decrease during the 2020s. What would happen to the market clearing price of lithium in the long run?

5. Why do you presume that employment growth is about 20 % greater in unlicensed occupations than in licensed occupations?

6. What do you suppose a typical state government does with the millions of dollars of occupational license fees it receives each year?

7. Why do you suppose that some publishers are selling space for advertisements in their e-books—and sometimes even in physical books?

8. From an economic standpoint, how could we explain the willingness of someone to pay $19.99 for a physical book that is available as an e-book for $9.99?