Question

1. Using one or more of the basic principles of microeconomics, explain the following pattern of events or behaviour:
   • Coles and Safeway supermarkets stay open until 8pm, but Aldi shuts at 7pm

Scarcity

• Retailers put Christmas decorations on display in September, and start selling Easter eggs just after Christmas
• Some restaurants offer free refills of coffee and soft drinks
• Theme parks do not charge extra for their most popular rides, even though there are long queues for them
• 24-hour convenience stores have locks on their doors

2. Is the following statement true or false? Explain the reason for your answer:

The cost of studying at university equals the total value of all the money that a student spends on food, clothing, textbooks, rent, transport, and fees.

Answer 1

1. Coles and Safeway supermarkets stay open until 8pm, but Aldi shuts at 7pm: This shows opportunity cost as Aldi will lose on revenue for an hour.

2. Retailers put Christmas decorations on display in September, and start selling Easter eggs just after Christmas: market forces of demand and supply.

3. Some restaurants offer free refills of coffee and soft drinks: Distribution of available resources. Profit orientedness.

4. Theme parks do not charge extra for their most popular rides, even though there are long queues for them. Allocation of resources.

5. 24-hour convenience stores have locks on their doors. Scarcity of resources.

Statement given is true. As it is opportunity cost of studying in university.