Economics Quiz of Supply and Demand - Case Study Example

Economics Quiz of Supply and DemandQ1) Just price is determined more from a type of understanding of the golden rule than it is based upon a traditional understanding of supply and demand economics and/or what the buyer and seller are willing and able to pay for a specific good or service to be rendered. For this reason, Thomas Aquinas himself stated the following: “If someone would be greatly helped by something belonging to someone else, and the seller not similarly harmed by losing it, the seller must not sell for a higher price: because the usefulness that goes to the buyer comes not from the seller, but from the buyer's needy condition: no one ought to sell something that doesn't belong to him” (Aquinas 11). Q2) With regards to the illustrated situation and the “ancient internet cable”, the cost can be allocated amongst the three parties equitably in the following way.

Due to the fact that the cable that exist in Judah and Eastern Jerusalem accounts for 39 billion in investment, this represents a 40% share of the total project cost as a function of the total being 98 billion Judaic coin. Similarly, the Turkish line represents a further 50% of the total cost of the project with the final 10 percent being build out to the island of Rhodes. In this way, total price can be marginally distributed by insuring that each responsible party pays according to the percentage rates that their part of the project has necessitated with Turkey paying the highest rate followed by Jerusalem/Judah at ten percent less and finally Rhodes at 40% less than Turkey.

Work CitedAquinas, Thomas. Summa theologica. Westminster, Md: Christian Classics, 1981. Print.