food and resource econ homework 1

# food and resource econ homework 1 - and on the other hand...

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1. A. Graph B. Graph C. When the current market price is \$4 the total number demanded is 56 units. When the prices rises to \$8 the amount demanded decreases to 36 units. D. Graph 2. A. Graph B. The excess supply is when quaintly supplied is greater than quantity demanded this occurs when the price is 67, quantity demanded is 10 and quantity supplied is 46. Excess supply is 36. The excess demand is the quantity demanded is greater than quantity supplied this occurs at price of 37, quantity demanded is 32 and quantity supplied is 18. Excess demand is 14. 3. Graphs only 5. A. Since the price of gas is less in the United States than in Italy Americans have larger cars. Larger cars use more gas, but because the gas is less expansive thus the cars are larger. B. Italy has a higher gas price so less people have their own vehicles and depend on public transportation more thus causing more Italians to use public transportation compared to Americans. C. The United States cars as a whole are not very efficient, with all the large SUVs and trucks,
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Unformatted text preview: and on the other hand the Italians have small cars with better fuel efficiency because the gas is four more dollars per gallon. If the price of gas went up by two dollars which would make it four dollars per gallon, the demand for gasoline in the United States would go down as long as all other things stay the same. And Americans would have to look toward alternatives such as public transportation. 7. A. Graph B. Graph C. Whenever the demand goes up for a product it causes the price to increase. The housing prices are more likely to rise at a higher rate in Miami vs. the suburbs because there is limited room Miami. There is no room to expand in Miami, so the supply is lower thus causing the prices to be higher. In the suburbs there is a great chance that there is room to expand meaning that the supply is greater not causing the prices to increase as much....
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## This note was uploaded on 04/21/2008 for the course AEC Food and r taught by Professor Daniel during the Spring '08 term at Mississippi State.

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