1. Use the graph to show the income and substitution effect of the giffen goods

2. The demand for resources is a derived demand. What is meant by that statement? Why is the employment of a resource inversely related to its price?

3. What is the Eurocurrency market, and how is banking in the Eurocurrency market different from domestic banking?

4. Explain how competition among businesses can influence a marketplace.

5. What measures the responsiveness of the quantity supplied of a good to changes in the price of that good?

6. Why does the price of gasoline frequently change? Explain.

7. When would you want to own a business that sells price-elastic products? Why?

8. What measures the responsiveness of the quantity supplied of a good to changes in the price of that good?

9. If the absolute elasticity of labor demand is 2.02.0, then an eight percent increase in the wage will decrease employment by how many percentage?

10. What is the price elasticity of supply if a fixed quantity of a good is available and no more can be made?