Question 16 (4 points) Price Quantity The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D1 and $2 (point B). If there is a decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change? There will be no change in the equilibrium point The equilibrium point will move from B to E. The equilibrium point will move from B to A. O The equilibrium point will move from B to C.Question 18 (4 points) Adam is thinking about going back to university as a full-time student. For the last 5 years, he has been working as an assistant manager at Superstore earning $60,000 per year. However, he has been offered another job with a small company as an assistant manager. If he takes the new position, he will earn $70,000 per year. Adam is already renting an apartment in Calgary for $1,500 per month and his food costs are $700 per month. If he decides to go to university, tuition is going to cost $7,000 per year and his books will cost another $1,500 per year. To finish his university projects, he must buy a new laptop computer (with specialized software) at a cost of $1,500. This is a one- time (first year) expense as the laptop (and software) will last 4 years. If Adam decides to go back to university as a full-time student, what is the cost of doing a 4- year degree? $280,000 O $315,500 $275,500 $35,500Question 13 (4 points) Refer to the figure above, an increase in population would be represented by a movement from? OD2 to D1 OB to A O D1 to D2 A to BQuestion 24 (4 points) Pakistan Indonesia Cashews Cashews (pounds) pounds 240 Cotton Collon ( bolts ) ( bolts) The figure above shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton? They have the same advantage. cannot be determined. Pakistan. Indonesia.Question 22 (4 points) How does the decreasing use of traditional cameras affect the market for tradition camera film? The demand curve for traditional camera film shifts to the right. The quantity of traditional camera film demanded increases. The demand curve for traditional camera film shifts to the left. The quantity of traditional camera film demanded decreases.Question 20 (4 points) Pookie's Pinball Palace restores old Pinball machines. Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration. After having spent $300, Pookie discovers that he will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration. Alternatively, he can sell the machine "as is" now for $1,000. What is the marginal cost of completing the task? $1,100 $800 $300 $1,400Question 15 (4 points) Refer to the figure above, assume that the graphs in this figure represent the demand and supply curves for almonds. Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters? Panel (d) O Panel (b) Panel (a) Panel (c)Question 25 (4 points) Refer to the figure below, suppose Ben and Jerry were both producing at point A of their production possibilities frontier and then Ben decided he would be willing to trade 4 kg of cones to get 2 kg of ice cream from Jerry. If both decided to specialize in what they had a comparative advantage in and trade, what would be the gains from trade? Ice cream and cones are measured in kilograms. Cones Ice Cream Ice Cream 1 kg of ice cream for Ben and 1 kg of cones for Jerry. 1 kg of cones for Ben and 1 kg of ice cream for Jerry. O 2 kg of ice cream for Ben and 1 kg of cones for Jerry. 2 kg of ice cream for Ben and 2 kg of cones for Jerry.Question 21 (4 points) Panel (8) PICE Quantity Panel to) Price Quanti Refer to the figure above, assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles? Panel (a) Panel (b) O Panel (d) Panel (c)Question 23 (4 points) New iPhones are normal goods. What will happen to the equilibrium price and quantity in the market for iphones if the price of Android phones rises, the wages for iPhone chip makers increase, more buyers enter the market for iPhones, and the price of iphone batteries increase? O price will rise and the effect on quantity is ambiguous. O price will fall and the effect on quantity is ambiguous. O quantity will fall and the effect on price is ambiguous. quantity will rise and the effect on price is ambiguous.Question 17 (4 points) Panel (d) Refer to the figure above, assume that the graphs in this figure represent the demand and supply curves for rice. What happens in this market if buyers expect the price of rice to fall? Panel (b) Panel (a) Panel (c) Panel (d)Question 14 (4 points) George Jack Lawns Mowed 10 6 Gardens Cultivated 5 The table above shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Which of the following statements is true? Jack has a comparative advantage in lawn mowing and George in garden cultivating. O Jack has a comparative advantage in garden cultivating and George in lawn mowing. C George has a comparative advantage in both tasks. Jack has a comparative advantage in both tasks.Question 19 (4 points) If in the market for peaches the supply curve has shifted to the left O the supply of peaches has increased. the quantity of peaches supplied has increased. O the quantity of peaches supplied has decreased. the supply of peaches has decreased