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1. WASHINGTON - Scorching heat and the worst drought in nearly a half-century are threatening to send food prices up, spooking consumers and leading to worries about global food costs. On Wednesday, the government said it expected the record-breaking weather to drive up the price for groceries next year, including milk, beef, chicken and pork. The drought is now affecting 88 percent of the corn crop, a staple of processed foods and animal feed as well as the nation's leading farm export. (NY TIMES)Use Supply and Demand analysis to answer the following questions:How does the drought affect the supply of corn?How does this affect the prices of milk, beef, chicken and pork?
2. NEW YORK--- Sushi bars are opening up in vast numbers in American cities. Consumption of sushi, the raw-fish delicacy from Japan, has soared in the United States in recent years. Nevertheless, the price of sushi has remained relatively constant.Use Supply and Demand analysis to answer the following questions:What happen to the supply and demand for sushi?Why has the price of sushi remained constant?
Write a letter to the editor of your local paper either supporting or criticizing the proposed $500,000 subsidy.
The division of taxing also expenditure functions between various levels government.
In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.
A company yearly sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ,
Explain in words how and why the income sensitivity of the demand for real balances affect the slope of the LM curve. Think of the demand for real balances as L(r,Y)= eY-fr where e and f are positive constants.B) What are the effects of a large s..
What do you understand by the terms 'inflation' and 'unemployment? Identify their main elements and causes. What is the relationship between inflation and unemployment? Use diagrams to answer the question.
You estimate that the price elasticity of demand for clinic visits is ?0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per ye..
How would you account for the great divergence that is acceleration of economic development in the West in 19th century while much of the rest of world remained characterized through low rates of economic growth?
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
Illustrate What would happen if prices were lowered when demand was inelastic
Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer and creaste and AS/AD diagram
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