Draw individual demands for caviar for Al, Barbara, Chuck, and Denise where Al's demand is relatively inelastic, Barbara's is elastic, Chuck's is upward sloping, and Denise refuses to eat caviar at any price. Then draw the corresponding market demand
Figure 5-21
(See Figure 5-21). Al's demand is steep with respect to price, while Barbara's is relatively flat. Chuck's D slopes up with respect to price, while Denise consumes zero at all prices. Market demand is a horizontal summation of individual demands at quantities purchased by A, B, and C (D is zero). Market D will slope down unless Chuck has such a strong opposite relationship to offset the downward demands of both Al and Barbara.
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Outside lags occur because
A) it takes time to identify a problem. B) firms must change investment plans before monetary policy can be effective. C) once changes are finally diagnosed and implemented, policies are immediately effective. D) once a problem is diagnosed, it still takes time to implement policy changes.
Explain whether it is possible for a country to have a comparative advantage in the production of a product without having an absolute advantage in the production of that product
What will be an ideal response?