1.Draw a supply and demand model. The supply curve should have a slope of 1. The demand curve should have a slope of -1.

The product is orange. Oranges for orange juice is grown in Florida. There was a terrible storm which decreased the production of oranges in Florida. What would be the results for the quantity and price of oranges from Florida?

a.quantity will increase; no change in price

b.quantity will decrease; price will increase

c.quantity will increase; price will increase

d.quantity will decrease; no change in price

e.quantity will increase; price will decrease

f.quantity will decrease; price will decrease

2.Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans). At the same time, the price of diesel fuel, used by fishermen to fuel their boats, falls. What is the effect on the market for fish?

A.A decrease in demand and supply; price and quantity sold rises.

B. A decrease in demand and supply; price and quantity sold falls.

C. A decrease in demand and an increase in supply; price falls but the change in quantity is ambiguous.

D. A decrease in demand and a fall in price and quantity sold.

3.When U.S. assets are more attractive to foreign investors the demand for dollars:

A.increases and the dollar value of foreign currency rises.

b. increases and the dollar value of foreign currency falls.

c. decreases and the dollar value of foreign currency falls.

d. increases and the dollar value of foreign currency rises.

4.This is for the Tension article. Use what you've learned from the supply and demand model. After implementing this _____________ the model suggests that ____________________ for labor.

a.Quantity floor; quantity supplied will be greater than quantity demanded

b.Price floor; quantity supplied will equal quantity demanded

c.Price floor; quantity supplied will be greater than quantity demanded

d.Quantity floor; quantity supplied will equal quantity demanded

e.Price ceiling; quantity supplied will be less than quantity demanded

f.Quantity ceiling; quantity supplied will be less than quantity demanded

5.This is for the Tension article. Per the article, managers who now have to adhere to the wage law will see their costs _____________ for the firm. As a manager, this will give them __________ incentive to _____________ the price for their products.

a.Increase; more; decrease

b.Decrease; less; increase

c.Increase; more; increase

d.Decrease; more; decrease

e.Decrease; more; increase

f.Increase; less; increase

6.This is for the Tension article. As a future manager, when a wage law, such as this, is instituted then you would want to demand ______________ workers and will create _____________ incentive to find a substitute for workers.

a.More; more

b.Less; less

c.More; less

d.Less; more