Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 2, Problem 15APA

(a)

To determine

Draw the PPF of B&M retailers before and after the availability of internet.

(b)

To determine

Draw the MC and MB curves for B&M retailers and the online retailers before and after the availability of internet.

(c)

To determine

Identify the changes in the production possibilities and preferences.

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Recent research indicates potential health benefits associated with coffee consumption, including a potential reduction in the incidence of liver disease. Simultaneously, new technology is being applied to coffee bean harvesting, leading to cost reductions in coffee production. How will these developmentsaffect the demand and supply of coffee? How will the equilibrium price and quantity of coffee change? Use both words and graphs to explain.
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