Question 1
Refer to the information provided in Figure 12.2 below to answer the question(s) that follow.
Refer to Figure 12.2. The graph of this situation represents a partial equilibrium analysis because it
◦ only shows a change in supply.
◦ considers only the personal computer industry.
◦ shows changes to both price and quantity.
◦ only shows two possible equilibrium points.
Question 2
To conduct a general equilibrium analysis of a change in consumer preferences away from beef and toward chicken, you must consider
◦ changes in the equilibrium prices and quantities of beef and chicken.
◦ changes in the amount of resources allocated to the production of beef and chicken.
◦ changes in the price of resources allocated to the production of beef and chicken.
◦ All of these
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