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Assignment
1.According to the video clip, Aldi sells only prepackaged products, 95 percent of which bear their own private brand labels. How does the law of demand apply to Aldi's private labeling of 95% of its products?
2.What are some of the marginal benefits of shopping at Aldi?
3.What are some of the marginal costs of shopping at Aldi?
4.Who decides which is greater; the marginal costs or marginal benefits?
5.If the marginal costs are greater than the benefits to an individual consumer, what does the consumer do? What then happens to Aldi?
2.What could be done to change the price elasticity of demand in a desirable direction?
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Describe and estimate the incremental costs of the extra 200 pairs per week (from 1,000 pairs to 1,200 pairs of shoes).
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