Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5Refer to Figure 6.5. Molly's budget constraint is AD. If her income decreases, her new budget constraint is

Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels

Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.) A) 1 B) 0.47 C) 2.14 D) 0.29

US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (HINT: Find the cost of mining in terms of wheat in each country.) Absolute Cost in US Absolute Cost in Canada Wheat $5 C$8 Mining $10 C$12

a. Canada has a comparative advantage in mining. b. The US has a comparative advantage in mining. c. No comparative advantage in mining exists for either nation. d. We must first know the exchange rate to be able to answer this question. e. Both a and b.