The graph below shows the market for a good where suppliers choose the quantity supplied according to the price of the previous period, but consumers choose the quantity bought according to the price of the current period. First, assume that demand is represented by D1 and that the price-quantity adjustment process starts from point a. Sketch the adjustment process and identify whether the market will converge to the long-run equilibrium P*Q*. Second, assume that demand is represented by D2 and that the price-quantity adjustment process starts from point a’. Sketch the adjustment process and identify whether the market will converge to the long-run equilibrium P’Q’. What factor accounts for the different outcomes under D1 and D2 (In solving this, it may be easier to work with two separate graphs)

Which of the following events could increase the demand for labor? a. an increase in the marginal productivity of workers b. a decrease in the amount of capital available for workers to use c. a decrease in the wage paid to workers d. a decrease in output price

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?

What does the term "smalling up" mean, according to white? what ways have you or people you know had to "small up"? if you haven't, what ways could you?