1. Suppose we observe the price of dry cleaning a women’s blouse is higher than the price of dry cleaning a man’s shirt. What are some possible explanations (more than one!) for this difference? Would you support a law banning gender-based price differences? Why or why not?
2. Some of the benefits to forming a married household include the many economies of scale that apply to a share living arrangement. What does this mean? Describe two examples of the economies of scale that apply to a multi-person household.
3. Consider the articles by S. Landburg about sons, daughters, and the
probability of divorce: “Oh no! It’s a Girl!” and “Maybe Parents
Don’t Like Boys Better”
(a) Describe the statistical divorce pattern discussed in the articles
(not specific numbers, just the general pattern)
(b) What explanation for this pattern do you feel is most plausible?
Justify your answer.