Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee falls from $6 to $4, the market quantity demanded would

Suppose that Rosie and Betty spend their free time making cakes and cookies

Is it possible for Betty to have an absolute advantage in the production of both cakes and cookies? Is it possible for Betty to have a comparative advantage in the production of both cakes and cookies? Explain.

Which of the following will decrease an economy's capital-labor ratio?

a. improvements in technology b. decrease in the quantity of laborers c. increase in prices d. decrease in consumption e. decrease in the capital stock