I’m stuck on a Economics question and need an explanation.
There are two discussion questions. You will need to answer both questions in order to receive full credit. Please review the Discussion & Peer Review Rubric.
- Joeseph Gallo, the founder of the famous wine company that bears his name, said that when he first started selling wine right after Prohibition (laws outlawing the sale of alcohol), he poured two glasses of wine from the same bottle and put a price of 10 cents a bottle on one and 5 cents a bottle on the other. He let people test both and asked them which they wanted. Most wanted the 10-cent bottle, even though they were the same wine.
- What does this tell us about people?
- Can you think of other areas where that may be the case?
- What does this suggest about pricing?
- Economic experiments have found that individuals prefer an outcome where no one is made better off to an outcome where the welfare of only some is improved if that improvement in welfare is unequally distributed. Why do you think this is so?
Discussion & Peer Review Policy:
As a reminder, see below regarding my course policies on “Discussion” (Also located in the Course Syllabus).
- Each discussion topic will be “Open” for a one-week period. There are two aspects to discussions: an original post and response to a response to peers.
- You are required to post one “substantive” posting addressing the course material. By “substantive,” I mean not merely providing a brief “yes, I agree” or “no, I do not agree” posting, but discussing the issues in some depth, providing your own thoughts or questions on the matter. Ideally, I’d like you to connect and integrate the discussion prompt to the course lectures, class discussions, and course textbook (whenever possible). The more evidence that shows you are doing the readings and engaging with them, the better. In your posting, avoid making unsubstantiated assertions and claims. Support your point with evidence from the textbook or other websites (include citations), whenever possible. Some possible ideas to write about include, describing any connections between the readings or course material, expanding on a concept or idea that struck you in the course material, or offering another explanation or illustrative example. (minimum of 250 words)
- You are also required to do two peer reviews. In other words, you must reply to two student posts. You will be randomly assigned your peer reviews. Additionally, I expect you to read the posting of your colleagues to further the discussion (and avoid repeating what others have posted). Simply saying “I agree, great point, etc” is not a sufficient peer review. Similar to your initial post, you must discuss your peer’s argument with detailed evidence from the textbook or other websites (include citations). If someone posted to you and the discussion can be further elaborated on, I expect you to keep the dialogue flowing! (minimum of 100 words)
- Please note! Friendly greetings and compliments are not included in the word count.
- Discussions and responses must show evidence of knowledge of facts pertaining to the issues being discussed and must attempt to apply the economic terms, ideas, and theories in the textbook.
- Word counts under the minimum of both requirements will be deducted 10 points.
- Failure to complete both sections will receive a 0.