1. Suppose the exchange rate between the British pound and the U.S. dollar is 1 = $1.50.

a.) Draw a graph showing the demand and supply of pounds for dollars. (y-axis: price of pounds, dollars per pound, x-axis: quantity of pounds)

b.) If the Bank of England implements a contractionary monetary policy, explain what will happen to the exchange rate between the pound and the dollar and show this on a graph. Has the dollar appreciated or depreciated relative to the pound? Explain

2.Suppose the demand for a unit of CO₂is P = 120 - 0.1Q_Dand the supply is

P = 15 + 0.04Q_S, where P is the price per unit, Q_Dis the quantity demanded in units per day, and Q_Sis the quantity supplied in units per day.

Calculate the market equilibrium price and quantity.Show your work.

3.What is the mortgage payment per $1000 of principal used in calculation

4.How does a large down payment affect other housing cost?

5.If a salesperson has gross sales of over $600,000 in a year, then he or she is eligible to play the company's bonus game: A black box contains 3 one-dollar bills, 1 five-dollar bill and 1 twenty-dollar bill. Bills are drawn out of the box one at a time without replacement until a twenty-dollar bill is drawn. Then the game stops. The salesperson's bonus is 1,000 times the value of the bills drawn. Complete parts (A) through (C) below.

A) What is the probability of winning a $27,000 bonus?

B) What is the probability of winning the maximum bonus by drawing out all the bills from the box?

C) What is the probability of the game stopping at the second draw?

6.Find the first and the second derivatives of M with respect to x

M =9X4-12 X 9 + 25 X Y Z+ 50

7.Other things being equal, and assuming an upward sloping labor supply curve, an

increase in the demand for labor in manufacturing will have what effect

8.Two Canadians workers, Sam and Joe, can each produce tv or coffee. Sam can produce either 50 kg of coffee or 1 tv per month. and Joe can produce either 120 kg of coffee or 1 tv per month.

a) assuming that world prices are such that tv trades for 135 kg of coffee on international markets.

b) what is the most of each good that Canadians can consume when the economy is open?

TV = ?Coffee= ?

9.Why is taxation necessary

10.a) Suppose the price of flour increases from $0.80 to $1.00 a pound and the quantity demanded

decreases from 100 pounds to 95 pounds. What is the price elasticity of demand for flour? Is the

demand for flour elastic or inelastic?

b) If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded

decreases from 900,000 bottles to 845,000 bottles, what is the price elasticity of demand for

suntan lotion?