ASSIGNMENT #2 QUESTIONS Due no later than 11:00 p.m. on Sunday of Unit 4 Weight 2.5% of the final grade Late Submission Policy This assignment is subject to the Late Submission penalty policy, namely 5% per day for three days. . This page will close and will not allow further submissions after this Late Submission period has expired. In the event of an emergency that prevents you from submitting within this time frame, special permission must be obtained from your instructor. Documentation substantiating the emergency is required. If the extension is granted, the professor will reopen the submission function for you on an individual basis. Do not email your submissions to your professor, either before or after the due date. All coursework should be submitted through the online course (Moodle) only. Description Students are to complete assignments in Word (or some other compatible word processor; no PDF) and apply economic concepts learned in this course to the answers submitted for evaluation. Do not submit more than ONE document for your assignment. 1. John was discussing the market for cocoa beans with his friend Kim. John said, "Ever since Venezuel announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is John's reasoning correct? Explain why or why not. (10 points) 2. Assume Diagram 1 below represents a competitive market. Diagram 1 8 S Price (dollars) 2 D 10 15 20 25 Quantity