Test 2 Summer session 22023

In order for a floor to be effective it must be _________ the equilibrium price.( 5 points)

a. Above

b. Below

2. ______________ surplus is the amount that is leftover after products are purchased at a price less than you were willing to pay. (5 points)

a. Consumer Surplus

b. Producer Surplus

Articles to Graph

For Questions 3 ,4, 5, and 6 (20 points each)

For each article below: Use the Answer sheet For the graphs and the questions above.

Write the number of the graph that best describes what happened.

Fill in only the appropriate boxes in each chart for each article and be sure and indicate if it is an increase or a decrease.

3. TUNA

HONG KONGTuna fish has surged in popularity thanks to pantry loading but producers of the canned fish are dealing with higher prices and other challenges that are making it difficult to keep up with the increased demand.

Americans have beenbuying more canned tunaduring the economic downturn, in part because it is one of the cheapest proteins on the market, costing as little as $1 for a 5-ounce can. Bumble Bee Foods said sales of canned and pouched tuna jumped as much as 100% from mid-March to early April, whileCostco WholesaleCorp.COST+0.12%put limits earlier this year on how many tuna containers a customer could purchase.

Even after the initial feeding frenzy, canned tuna producers say sales for these products have remained significantly higher than a year earlier.

Analysts say wholesale prices could remain elevated or trend higher in the coming months due to challenges of getting enough fish to meet the surge in demand.

Pittsburgh-based StarKist Co., which is owned by a South Korean conglomerate, processes and cans most of its tuna in American Samoa, a tiny territory that is closer to New Zealand than it is to the continental U.S.

The company has been unable to buy tuna from some of its regular suppliers the. Border restrictions and fishing-port closures at some neighboring Pacific islandswhere StarKist often buys tunahave prevented fishing vessels from coming in and delivering their catch.

Compounding matters, StarKist's plant on American Samoa recently encountered mechanical issues that took a while to fix, in part because the company had to charter a plane to fly in people to bring parts and do the repairs. Then shipments of canned tuna to the continental U.S. were held up because the ship that services the archipelago broke down twice and had to be replaced.

"There have been a lot of complaintsrightly sobecause they're not getting their products," said Mr. Choe, referring to retailers.

"People are asking, is this pantry-loading? Is this consumption? I would say, every pantry-loading leads to higher consumption. People are not just leaving that in their pantry. They are consuming it," Joerg Ayrle, Thai Union's chief financial officer, said on a conference call. He also said the company has released videos with recipes for various types of tuna fish cakes and tuna pancakes.

4. Mac and Cheese Kraft Heinz CEO: Mac & cheese sales are soaring amid the coronavirus outbreak

America is opting for tried and true comfort food found inside cardboard boxes, metal cans and plastic wrappers as they deal with tough times stemming from the coronavirus pandemic.

Besides Hormel's iconic Spam seeing red-hot sales, good old-fashioned Kraft Macaroni and Cheese appears to be flying off the shelves and into over-stuffed cupboards.

So much for those keto diets.

"The champion for sure is Kraft Mac & Cheese," remarked Kraft Heinz CEO Miguel Patricio in an interview when asked about top-selling products right now. Patricio said Kraft Heinz brands such as Oscar Meyer, Capri Sun and Philadelphia Cream Cheese are also experiencing brisk sales.

"People are looking for comfort and for familiarity. And so these are all brands that have been with consumers for a long time and brands that they love," Patricio said.

For Patricio, the pickup in business couldn't come at a better time.

5. Energy

An abundance of fossil fuels combined with advances in technology to harness wind and solar power has sent energy prices falling around the world.

6. Coffee

A sustained drought followed by two July frosts blew a hole in Brazil's coffee output, immediately sending wholesale prices up. The frost will significantly affect the 2022-23 harvest, said Carlos Mera, who analyzes the coffee markets at Rabobank. The Brazil frosts followed COVID-related supply chain snarls, a dearth of shipping containers, labor shortages and other production hiccups. Add in rising costs for virtually everything and you have a bitter cup brewing for coffee drinkers

GRAPH

For each article, write the number of the graph that best describes what happened. Fill in only the appropriate boxes in each chart for each article and be sure and indicate if it is an increase or a decrease.

Make sure you fill in the graphs

For each graph use an arrow to indicate and increase or a decrease.

Use a "?" If you can't tell if there is a decrease or an increase.

3.Tuna

4. Mac and Cheese

5. Energy

6. Coffee

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