Add two columns to your table in Problem 6 and list Max’s marginal utility per dollar from windsurfing and from snorkeling.

 Hours per day Total utility from windsurfing Total utility from snorkeling 1 120 40 2 220 76 3 300 106 4 360 128 5 396 140 6 412 150 7 422 158

Data From Problem  6

Make a table of the combinations of hours spent windsurfing and snorkeling that Max can afford.

## Calculate Max’s marginal utility from snorkeling at each number of

Calculate Max’s marginal utility from snorkeling at each number of hours per day. Does Max’s marginal utility from snorkeling obey the principle of diminishing marginal utility?

 Hours per day Total utility from windsurfing Total utility from snorkeling 1 120 40 2 220 76 3 300 106 4 360 128 5 396 140 6 412 150 7 422 158

## A. What is the TPP?b. Who in the United States

a. What is the TPP?

b. Who in the United States would benefit and who would lose from a successful TPP?

c. Illustrate your answer to part (b) with an appropriate graphical analysis assuming that tariffs are not completely eliminated.

d. Who in Japan and other TPP nations would benefit and who would lose from a successful TPP?

e. Illustrate with an appropriate graphical analysis who in Japan would benefit and who would lose from a successful TPP assuming that all Japan’s import quotas and tariffs are completely eliminated.

## A. When a state raises its minimum wage above the

a. When a state raises its minimum wage above the federal minimum, what would you expect to happen to unemployment in that state? Illustrate your answer with a graph.

b. The news article reports that the percentage of hourly paid workers paid the minimum wage or less decreased from 13.4 percent in 1979 to 4.3 percent in 2013. Would you expect the rise in the minimum wage to have a smaller effect on unemployment today than in 1979?

c. The news article reports that during the recovery from the 2008–2009 recession, wage rates grew slowly and the bottom wage rates grew slower than top wage rates, straining the budgets of low-paid workers. How would you expect this fact to have influenced the effect of the minimum wage on unemployment?

## A. Looking at Fig. 1 on p. 99, explain what

a. Looking at Fig. 1 on p. 99, explain what must have happened in 2014 to the supply of coffee.

b. Given the information in Fig. 1 and the estimated elasticity of demand for coffee, by what percentage did the quantity of coffee change in 2014 and in which direction?

c. The news article says that farmers’ revenue shrank as the price of coffee fell. Explain why this fact tells us that the demand for coffee is inelastic.

d. How does the total revenue test work for a rise in the price? What do you predict happened to total revenue in 2014? Why?

e. Coffee isn’t just coffee. It comes in different varieties, the main two being Arabica and Robusta. Would you expect the elasticity of demand for Arabica to be the same as the elas­ticity of demand for coffee? Explain why or why not.

## Under the deal, Netflix will buy Internet service from Comcast,

Under the deal, Netflix will buy Internet service from Comcast, rather than connect directly for free with some smaller ISPs like Cablevision as it does now.

a. How will Netflix’s decision to buy more expensive Internet service influence Netflix’s supply of online movie viewing?

b. Given your answer to part (a), explain why Netflix says it will not hike its price.

c. What can you say about the price elasticity of demand for Netflix online movie viewing?

## A. What would happen to the price of bananas if

a. What would happen to the price of bananas if TR4 spread to Central America?

b. What are some of the substitutes for bananas and what would happen to demand, supply, price, and quantity in the markets for these items if TR4 were to come to America?

c. What are some of the complements of bananas and what would happen to demand, supply, price, and quantity in the markets for these items if TR4 were to come to America?

d. When the price of bananas increased in 2008, did it rise by as much as the rise in the rise in the price of oil? Why or why not?

e. Why would the expectation of the future arrival of TR4 in the Americas have little or no effect on today’s price of bananas?

## A. How has “fracking” changed U.S. production possibilities? b. How have

a. How has “fracking” changed U.S. production possibilities?

b. How have advances in technologies for producing other goods and services changed the U.S. production possibilities?

c. If “fracking” had been the only technological advance, how would the PPF have changed?

d. If “fracking” had been the only technological advance, how would the of producing oil and gas have changed? Would it have been lower or higher than it actually was?