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Unformatted text preview: . a) In the market for SUVs, gasoline prices rise 25% over a six-month period. b) In the market for coffee, severe global weather systems destroy 30% of the coffee bean crop. With falling demand due to an increase in the price of a complement, both price and quantity fall With the rising cost of producing coffee, supply decreases. Price increases and quantity falls. c) In the market for cereal, the price of cardboard rises. 3. Consider the graph below: a) What type of graph is the graph above? The graph above is a cross section graph. At one point in time it looks at annual earnings across groups based on education and sex. b) Give TWO conclusions can we draw about the graph above (there are many right answers here) Answer include the positive relationship between education and earnings, or that men earn more than women at each education level . 2002 With rising costs of cereal production, supply decreases. Price rises and quantity falls...
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This note was uploaded on 01/22/2012 for the course ECO 101 taught by Professor Laniga during the Fall '08 term at SUNY Oswego.
- Fall '08