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You mentioned
"Prices of orange juices in the United States are rising despite the fact that poor demand since the production from Florida has been halted and so the supply of orange juices have decreased. Since the supply is affected by factors other than the price, the supply curve of oranges shifts to the left, raising the price."
What you're saying here is that demand is low because supply is low, and supply is low because orange production in Florida has halted.
You then state "the supply is affected by factors other than the price, the supply curve of oranges shifts to the left, raising the price." If the price goes up, what happens to demand in accordance with the law of demand?
Please respond in 100 words or more.
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Consider the following utility function: U(X,Y) = max(X, 3Y) (a) draw the indifferent curve for this utility function. (b) find the Marshalian funtions for X and Y and the corresponding indirect utility function.
When you do not know the right demand, you can't set the right price. So, instead of setting the price first, how can you find out the right price when there are some uncertainty in your demand estimate?
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A store owner keeps a record of daily cash transactions in a text file. Each line contains three items: The invoice number, the cash amount, and the letter P if the amount was paid or R if it was received.
While some of you may not choose to enter economics as a profession, hopefully you have gained some understanding of macroeconomic issues from the course. Pick any current event that interests you. Briefly summarize the event for your classmates a..
When oil prices were high, airlines were desperate to replace gas-guzzling planes with new, fuel-efficient ones. Given the daunting commercial outlook, many preferred to lease their new jets, leaving the leasing firms to stump up the capital requi..
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