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Q1. What homeland security challenges could the U.S. face in the future? Describe at least two challenges and identify operational issues and policies that could be implemented to meet the challenges
Q2. Acme tobacco is currently selling 5000 pounds of pipe tobacco for every year. Due to competitive pressures, the average price a pipe declines from $15 to $12 as a result, the demand for Acme pipe tobacco increases to 6000 pound per year.
a) What is the cross elasticity of demand for pipes and pipe tobacco?
b) Assuming that, the cross elasticity does not change, at what price of pipes would the demand for pipes tobacco be 3000 pounds per year? Use $15 as the initial price of a pipe.
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