A zombie apocalypse is expected to make paper money worthless. In your opinion what would be...

A zombie apocalypse is expected to make paper money worthless. In your opinion what would be the item with the highest relative price (the price of a good in terms of another)? Explain why?

Explain how an increase in human capital (knowledge and skills acquired) would effect a change in or movement along the supply curve of bullets during the zombie apocalypse.

Expert Solution

A zombie apocalypse is expected to make paper money worthless. In your opinion what would be the item with the highest relative price (the price of a good in terms of another)? Explain why?

In case of zombie apocalypse, the item with the highest relative price would be chainsaws or swords.

This is because the only way to kill zombies is to chop off their brains and not any other body part. This can only be done with chain saws or swords. This means during time of apocalypse, the most required and traded item would be a chain saw or a sword. This means these items would have the highest relative price during these times.

Explain how an increase in human capital (knowledge and skills acquired) would effect a change in or movement along the supply curve of bullets during the zombie apocalypse.

An increase in human capital or skillset required to produce bullets would lead to a shift in the supply curve of bullets. This is because an increase in the skillset of workers would lead to an increase in the production of bullets during the times of apocalypse, leading to a rightward shift of the supply curve of bullets.

Rahul Sunny answered 2 years ago

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