Concepts: Price elasticities, supply and demand, First-degree price discrimination.
Background: Sergey needs a ride out from the quarantine zone after getting his family in Moscow. He only has one option. It is to convince the truck driver to stay and wait 15 minutes.
Question: Draw a supply and demand graph representing this situation, and explain the shape of the supply and demand curves in words. Discuss why Sergey ends up giving all the money he has.
Background: When Assane was a teenager, Claire needed a violin for her recital. To rent a violin for one day, it would cost 350 francs, or 1,500 francs for one week.
Question: Why is the owner offering to rent the violin for a week for less than 2,450 francs (350 x 7 )?
