Identify what determinant changes and explain how the equilibrium price and equilibrium quantity in a purely competitive market will change given the following situations. Draw the appropriate demand and supply curves showing the change. (Each graph should have an equilibrium point before the impact as well as after; be sure to label all parts of the graphs).

a. Product: oranges – A winter storm freezes 50 % of the fruit on the trees in Florida

b. Product: avocados- A tariff is imposed on the importation of avocados from Mexico while demand remains the same.

c. Product: donuts – consumers desire for donuts decreases and the cost of flour (used to make donuts) increases

Explain in detail the shape of a perfectly competitive firm’s Total Revenue function and a monopoly's Total Revenue function. Explain why they are different.

Adam Smith coined the Diamond Water Paradox. Where something that is essential to life has little value where something that does not has great value.

1.) Explain what theory Adam Smith was using and therefore was unable to explain why the paradox existed.

Knowing what you know now about how the various industries operate, when you proceed to the next steps in your career, either as an employee or as a business person, where will you concentrate on finding your place in the economy? Please provide some analysis of why you made this particular choice, using examples , and also please provide some choices you would not make, also using examples.

12.   Is Fisher’s debt-deflation theory of depression an alternative (substitute) for or complement to Keynes’s theory? Briefly explain.

Consider the effects of inflation in an economy composed of only two people: Jake, a bean farmer, and Latasha, a rice farmer. Jake and Latasha both always consume equal amounts of rice and beans. In 2016 the price of beans was $5, and the price of rice was $3.

Suppose that in 2017 the price of beans was $10 and the price of rice was $6.

Inflation was ____________%.

Indicate whether Jake and Latasha were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017 the price of beans was $7.50 and the price of rice was $6.

In this case, inflation was ___________%.

Indicate whether Jake and Latasha were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017, the price of beans was $1.50 and the price of rice was $6.

In this case, inflation was_______%.

Indicate whether Jake and Latasha were better off, worse off, or unaffected by the changes in prices.

What matters more to Jake and Latasha?

a. The relative price of rice and beans

b. The overall inflation rate

What were the trade barriers in the 1990s?

What were the pros and cons of these barriers?

Elasticity of demand curve 1 = - 0.5

Elasticity of demand curve 2 = - 2.5

Elasticity of demand curve 3 = - 0.2

Which of the following provides the greatest moral hazard potential?

Group of answer choices

all provides identical levels of moral hazard

D2

D3

D1

Based on this data calculate:

a) M1 +

b) M2

c) M3

d) M2+

What kind of firm strategy do companies have in the drone industry?

1.)  Economies of scale refer to

A.) the minimum point on the short-run average total cost curve

B.) the flat portion of the long-run average total cost curve.

C.) a decrease in the long-run average total cost of production as output increases.

D.) a and b

E.) none of the above

.

2.) Minimum efficient scale refers to the

A.) minimum size plant in any given industry

B.) minimum point on the short-run average total cost curve

C.) output level when economies of scale first set in

D.) output level when diseconomies of scale first set in

E.) lowest output level at which average total costs are minimized

.

3.) In long-run competitive equilibrium P = SRATC, because if P > SRATC

A.) losses in the industry would cause some existing firms to exit the industry

B.) positive economic profit would attract firms to the industry in order to obtain the profits

C.) firms would not be producing the quantity of output at which MR = MC

D.) firms would not be covering total fixed costs

E.) none of the above

Discuss the role of moral hazard and adverse selection in the 2007–2008 financial crisis.

Choose two different types of businesses (grocery store or an electronics store), and choose a product from one of the businesses.

As the store's buyer, think of the major objections/questions you would ask a product salesperson if he/she asked you to buy a large quantity and to promote the product.

As the salesperson, describe how you would overcome those objections.