Write a short (250 word minimum) essay on one of the following topics:
Option A: Market Failure
For this essay, you need to find and analyze an example of market failure. Here are the questions you need to address:
Summarize the example of market failure.
Explain why it is a market failure and what type of failure it is. (Market failure, public good, externality, information asymmetry, etc.)
Offer a possible solution to the market failure.
What are the trade-offs of your proposed solution?
Option B: Elasticity
Offer an example of a good that has a low elasticity of demand for you in particular.
Explain why the elasticity is low for you.
Would the good be elastic for others? Why or why not?
How does this low elasticity affect your consumption?
Repeat for a good with high elasticity of demand (for you).
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