1. Consider a market for apples. Suppose that a new disease that kills apple trees appears. Illustrate this event on a s
Posted: Wed Jul 06, 2022 5:58 am
1. Consider a market for apples. Suppose that a new diseasethat kills apple trees appears. Illustrate this event on a supplyand demand graph? Which curve moves? What happens to price andquantity?
2. Maria rents on a month-to-month basis an apartment thatshe can barely afford, in a market where apartments are hard tofind. Her landlord announces that she is doubling the rent,effective immediately. What is likely to be Maria’s short-runresponse (say, over the next few days or weeks)? What might be herlikely long-run response (over the next few months)?
2. Maria rents on a month-to-month basis an apartment thatshe can barely afford, in a market where apartments are hard tofind. Her landlord announces that she is doubling the rent,effective immediately. What is likely to be Maria’s short-runresponse (say, over the next few days or weeks)? What might be herlikely long-run response (over the next few months)?