Suppose Hugh can produce either four short stories per week or eight gallons of orange juice and Liz can produce either four short stories per week or four gallons of orange juice. At this time Hugh is producing four gallons of orange juice and two short stories per week and Liz is producing two short stories and two gallons or orange juice. What should Hugh specialize in and what should Liz specialize in?

Who are the four market participants and what are their goals?

Provide an example of what would cause:

Rightward shift of the demand

Leftward shift of the demand

Rightward shift of the supply

Leftward shift of the supply

A decrease in the quantity demanded

An increase in the quantity supplied

Draw graphically what would happen in the car industry if:

U.S Economy falls into a recession

Auto workers strike

Imported cars become more expensive

The price of gas increases