In this market for watermelons, a severe drought occurs which affects the watermelon crop. The equilibrium price a. decreases and the equilibrium quantity is ambiguous. b. and quantity both increase. c. increases and the equilibrium quantity decreases. d. and quantity both decrease.

Gerda, a real estate agent, is selling a moderately priced house in a subdivision. she knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. a buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through. what does this scenario best illustrate?

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

If the family’s net monthly income is 7,800 what percent of the income is spent on food clothing and housing?