The Polaroid corporation earned a patent for its instamatic ...

[Caiter2013]

The Polaroid corporation earned a patent for its instamatic camera in the 1960s. If the constitutional length of patent protection is 20 years, why do you believe Polaroid's effective use of its patent ended much earlier?
 
  What will be an ideal response?

Question 2

Explain the income and substitution effects of an increase in the price of one good on an individual's consumption choice.
 
  What will be an ideal response?

[randomguy133]

Answer to Question 1

The reason is that patents are only valuable for as long as the public values the product. In the 1970s the popular introduction of the 35 mm camera cut into the sales of Polaroid and reduced the economic value of their patent even though the legal life had not yet expired.

Answer to Question 2

Since an increase in the price of one good reduces a consumer's purchasing power (in other words, the consumer feels less wealthy), she is likely to buy less of both goods. This is called the income effect of a price increase. Also, since the increase in price will make the good more expensive relative to other good, the quantity purchased of that good will fall. This is called the substitution effect of the price increase.
A