Author Question: Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is ... (Read 46 times)

cnetterville · **on:** Jun 29, 2018

Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.

A) become case A; become case 1
B) become case A; stay at case 2
C) stay at case B; become case 3
D) stay at case B; become case 1

Question 2

In the country of Konswano there are 4 people. Each person lives for 40 years. In their first 10 years, they earn no income. In the next 20 years, they earn 40,000 per year and in the last 10 years they earn no income.

Each year their consumption is 20,000. If everyone in Konswano is 25 years old, then the Lorenz curve for income is ________. A) above the Lorenz curve for wealth
B) above the line of equality
C) equal to the line of equality
D) below the Lorenz curve for wealth