1.Using the data in the following table, answer the following questions:

a.Suppose that the government establishes a price ceiling of $3.70 for sunflower seeds. What will be the main effects of this price ceiling?

b.Next, suppose that the government establishes a price floor of $4.60 for sunflower seeds. What will be the main effects of this price floor?

c.What is the easiest way to eliminate the market disequilibrium caused by the price floor and price ceiling? Explain.

d.Why would the government want to impose either a price ceiling or a price floor on sunflower seeds?Who benefits and who loses from each of these government actions?

2.The United State Post Office (USPS) has an agreement with Amazon and other major online retailers. FEDEX and UPS also have agreements.Some economists contend that public agencies generally are less efficient than private businesses.The USPS competes directly with Federal Expressand UPSfor delivery of express mail and packages.

Assume you need to send an overnight letter and a package weighing 3 pounds from your address to New York City and San Diego, California. Based on the interactive rate and options calculators, which service is more competitive as to price and delivery, FEDEX, USPS or UPS ? Does a lower rate with greater delivery options mean greater efficiency? Why or why not?

In the news: WSJ, Amazon, in Need of Drivers, Turns to Its Employees, May 13, 2019 by Jennifer Smith and Kimberly Chin (access to the article https://www.wsj.com/articles/amazon-to-help-employees-start-their-own-delivery-business-11557747201 is available with a WSJ subscription. It is not necessary to complete the assignment.)

Amazon is creating its own package delivery service by helping their employees start their own local delivery services. How does this impact your answers/opinions to the above questions?