Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. Why were there so many "lemon" kiwifruit in the U.S. market?
What will be an ideal response?
Mature kiwifruit is sweeter but costs more to produce than immature kiwifruit. Consumers cannot tell if a kiwifruit is sweet or sour before they taste it, so they were unwilling to pay a high price for kiwifruit. The relatively low price drove out the more costly to produce, sweeter, kiwifruit from the market.
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In the case where interest rates are higher in Canada, which of the following is an example of a "carry trade"
a. Increase borrowing in the US, convert to Canadian dollars and invest in Canada b. Increase borrowing in the US and invest in the US c. Increase borrowing in Canada, convert to dollars and invest in the US d. Increase borrowing in Canada and invest in Canada
The law of demand indicates that as the price of a good increases:
a. suppliers sell less of it. b. suppliers sell more of it. c. buyers buy less of it. d. buyers buy more of it.