Assignment 2 AREC 240 fall 2009 revised 22 Sept

Assignment 2 AREC 240 fall 2009 revised 22 Sept - AREC 240...

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AREC 240 Fall 2009 Assignment 2 Due: Friday, September 25 1. The following questions ask you to use the idea of market equilibrium to determine the impact of the related events. In each part, begin by drawing the supply and demand curve for the base case. This describes the initial situation. Label the initial equilibrium price and quantity for the base case. Then show whether the supply curve or demand curve shifts, draw in the new curve, and locate the new equilibrium price and quantity. Hence for each of these events, you should be able to determine whether price increases or decreases, and whether quantity increases or decreases. Drawing the curves is an essential part of the answer. In addition to drawing the shift, you need a brief explanation of why the shift occurs. Market Event a.The market for A New York Times article (August 22, 2009) discusses the possibility that bottled water in the standards for atrazine (a chemical weed killer with potential health risks) the US currently at 3 parts per billion, are too low.
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This note was uploaded on 10/05/2009 for the course AREC 240 taught by Professor Staff during the Fall '08 term at Maryland.

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Assignment 2 AREC 240 fall 2009 revised 22 Sept - AREC 240...

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