Economics CA Essay Example | Topics and Well Written Essays - 1000 words

Economics CA - Essay ExampleComparatively, the affix of diamonds is so low that the avail of one diamond is greater than a glass of water, therefore, people are will to pay a greater amount for diamond as compared to water. This notion can be illustrated with the help of the following graphs agree to the graph, the supply of water is almost horizontal, so where ever you shift the demand, the equipoise price will ceaselessly remain constant. In contrast to this the graph of diamonds show a steep supply, so its equilibrium price is not affected by the change in demand.We can apply the same concept to explain the reason why an athlete earns so much money. It takes a lot of time and exertion to become a professional athlete. Not everyone is capable of becoming a pro athlete therefore, the supply of a professional athlete is far less than other professions such as engineers, doctors, accountants etc. Moreover, there is an international demand for athletes as they are being liked by numerous fans that are willing to pay a large amount to buy tickets to see their favorite athlete compete. An athlete with a larger add up of fans has a taller salary as compared to an athlete with a less number of fans. So, being in a less quantity ( low supply) and a large number of fans ( high demand) results in a high borderline utility of professional athletes, therefore their salaries are high and they give rise so much money by showing their performances to the audience.2. A persons wage is tie in to his/her worth to the firm. Use the background information and do some research on your own. Compare the marginal tax product of a teacher to a professional athlete. Why is it different? Be for certain to read the marginal productiveness presentation on this topic prepared by the instructor.Ans. Marginal productivity is the increase in productivity by the addition of one additional unit of input. Marginal revenue product is closely related to marginal