Answer the following short questions

1.If binding, why price floor would cause a surplus in the market?

2.How a binding price floor causes a surplus and could occur with a price floor?

3.If technological improvements decrease production cost, we expect equilibrium price to decrease and equilibrium quantity to increase. How is that?

4.When is it advantageous for Bill and Ted to specialize and trade with each other? The answer is always advantageous to specialize and trade with each other. How is that work?

5.Define (1) the economic question and (2) provide a second more general definition of economics.

6.After a stressful week of exams, you decide to rent a southeast Florida cabin and spend the weekend fishing and relaxing in nature.What is the opportunity cost of these choice statements?

7.List 4 demand determinants that cause a shift in demandandthe necessary changes in that determinant to cause anincreasein demand.

8.Describe the similaritiesandthe difference between the supply and quantity supplied.

9.Bud and Don are neighboring farmers.In a week, Bud can produce 800 gallons of milk or collect 5,000 eggs.In a week, Don can produce 600 gallons of milk or collect 8,400 eggs.Assume Bud and Don have linear production functions.

For what prices of a 1 gallon of milk (measured in the number of eggs) are Don and Bud willing to specialize and trade with each other?