If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is

How will a reduction in the price of cotton influence the market for blue jeans?

a. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the left. b. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the right. c. The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the left. d. The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the right.

Now suppose that the firm is contemplating the use of a new abatement (AN) technology, which would generate the following cost functions: TACN = 1000 + 0.125(AN)2 MACN = 0.25(AN) Find the cost savings to the firm of using this new technology when faced with the emission charge.

Consider the following abatement cost functions (TACO andMACO) for a firm using an old abatement (AO) technology: TACO = 1000 + 0.25(AO)2 MACO = 0.5(AO), where A isunits of abatement undertaken by the firm, and the cost values are in thousands of dollars. Further assume that the regulatory authority has set an abatement standard (AST) equal to 40 units for each firm and has proposed an emission charge implemented as a constant per unit tax (t) of $10 (i.e., MT = 10), where Total Tax = t(AST – Ai), and Ai is the existing abatement level.