Question
Need help answering these two questions. Consider the market for cut flowers. Draw the market diagram for cut flowers and make sure that the diagram
Need help answering these two questions.
Consider the market for cut flowers. Draw the market diagram for cut flowers and make sure that the diagram is completely labeled.
Market: Cut flowers
Price: Price per bunch
Quantity: Bunches per week
Start the market at a market price of $5 per cut flower and 12,000 bunches per week. Detail what happens to equilibrium quantity and equilibrium price and show what happens to the market in the same diagram when:
(a) Lower product taxes
(b) Population likely to buy flowers increases
Consider the market for garlic. Discuss the following comments using the economic diagrams, terms and ideas we are learning.
a (25 pts). "Everyone thinks that we don't produce the right amount of garlic or that it is too expensive.I tell them - You are wrong. This is a capitalist market.It is producing efficiently.That is what is so great about markets.Everyone wins."
b (10 pts)."Oh, sure the plowing we do to grow garlic destroys native plants that butterflies use to grow and reproduce, but that doesn't mean the market is inefficient. Even if it is inefficient, there is no way to fix it."
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