Assume that ham is a normal good and that spam is an inferior good. Due to the warm weather we had last year the demand for firewood has decreased. Hourly wage rates increase. Workers organize a union that demands higher wage rates for its members. Hourly wage rates decrease.
Employer finds that demand for their finished products has declined.
Workers leaves the area for better job opportunities elsewhere. Studies show that people with high levels of education tend to be more environmentally aware. This benefit to society , however, plays no part in an individual's decision to obtain education. Your staff economist has determined that the price elasticity of demand for surf boards is -2. A consultant for the CAT bus system in Raleigh, North Carolina, estimates that the price elasticity of demand for bus rides is -3.41.