Abdullah loves donuts. The table below reflects the value Abdullah places on each donut he eats:
Value of first donut
Value of second donut
Value of third donut
Value of fourth donut
Value of fifth donut
Value of sixth donut
a. Use this information to construct Abdullah’s demand curve for donuts.
b. If the price of donuts is $0.20, how many donuts will Abdullah buy?
c. Show Abdullah’s consumer surplus on your graph. How much consumer surplus would he has at a price of $0.20?
d. If the price of donuts rose to $0.40, how many donuts would he purchase now? What would happen to Abdullah’s consumer surplus? Show this change on your graph.
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
to Make 1
in 2400 Hours
1- What is Japan’s opportunity cost of one car?
2- Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision?
3- 3- In what product Japan has an absolute advantage? and in what product Korea has an absolute advantage ?