1. ECO 201 Principles of Economics
Dr. Marina Irimia-Vladu Fall 2007
Homework 1 - Chapter 1
Name: ______________________________ ID:______________ Section: _______
I. Suppose that the university decided to reduce the price of parking permits from Dhs 300
per year to Dhs 20 per year.
1. What do you think would happen to the number of students desiring to park their cars on
campus?
2. What do you think would happen to the amount of time it would take to find a parking
place?
3. Thinking in terms of opportunity cost, would the lower price of parking permit
necessarily lower the true cost of parking?
4. Would the opportunity cost of parking be the same for students with no outside
employment and students with jobs earning Dhs 20 per hour?
II. Problems 4, 5, 6 and 11 from the end of Chapter 1
