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Question 1: Assume we are given a demand schedule that is represented by P = 200 5Q and a supply schedule where P = 110 + 10Q, where P = Price and Q = Quantity.
What is the equilibrium price and quantity shows all of your work.
Question 2: Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, dairies produce cream, which in turn makes ice cream. In the market for low-fat milk, the following events occur:
a) The wage of dairy worker rises
Show your points
Illustrate what is James' opportunity cost of producing chickens. Which person has an absolute advantage in which activities.
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Illustrate what do you think would occur when there is little or no competition is a marketplace
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