Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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."

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles A Business Perspective Financial Accounting Chapter 1-8

Authors: James Edwards, Roger Hermanson, Bill Buxton

1st Edition

1461088186, 978-1461088189

More Books

Students also viewed these Economics questions

Question

Prove the combinatorial identity?

Answered: 1 week ago

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Mortality rate

Answered: 1 week ago

Question

Armed conflicts.

Answered: 1 week ago