A rising inflation rate tends to injure the following types of people:

Comment on the following statement: "If a firm shuts down in the short run, it will earn zero economic profit."

What will be an ideal response?

When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber. Given that lumber is timber that has been sawed or split into planks and boards, explain in terms of supply and/or demand how the hurricane

impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity): a. Domestic lumber b. Imported lumber c. New home construction