Q1. Assume the monthly demand for soda by a consumer is given by.
a. If the price of soda is $1 per can, explain how many sodas will the consumer purchase in a typical month?
b. Illustrate what is the elasticity of demand for soda?
Q2. Assume that a freeze in Florida wipes out 20 percent of the orange crop. Explain how will this event affect the equilibrium price and quantity of Florida oranges?
Q3. Boulder, Inc., exports chairs to Europe (invoiced in U.S. dollars) and competes against local companies of Europe. If purchasing power parity exists, why would Boulder not benefit from a stJorgeg euro?