The present value of $500,000 in 4 years at 7 percent interest is approximately:

Refer to Figure 3-6. The figure above represents the market for coffee grinders. Compare the conditions in the market when the price is $15 and when the price is $21. Which of the following describes how the market differs at these prices?

A) At each price there is a shortage; the shortage is greater at $15 than at $21. B) At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage. C) The difference between quantity supplied and quantity demanded is greater at $21 than at $15. D) At each price the demand for coffee grinders exceeds the supply of coffee grinders.

If a good is imported into (large) country H from country F, then the imposition of a tariff in country H

A) raises the price of the good in both countries (the "Law of One Price"). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F.