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The supply curve
Assume initially that the demand supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world premium blends, demand rises substantially. Describe what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil's premium coffee crop, what will happen to the price of premium coffee?
In the late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front. As a result, the production of oranges was severely reduced. In addition, in early 2007, President George W. Bush called for the United States to reduce it gasoline consumption by 20% in the next decade. He proposed an increase in ethanol produced from corn and stalks and leaves from corn and other grasses. What is the likely impact of these two events on food prices in the United States?
Illustrate what is the number of kilowatt hours of electricity produced and what is the price that the company will charge.
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Theory Galbraiths of consumer demand has an important implication in terms of underallocation of resources to public goods.
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Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
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