Project 1

Chapter 3 Question 14

14. Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to premium blends, and so demand rises substantially. Describe what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil’s premium coffee crop, what will happen to the price of premium coffee?

15. In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front. As a result, the production of oranges was severely reduced. In addition, in early 2007, President George W. Bush called for the United States to reduce its gasoline consumption by 20% in the next decade. He proposed an increase in ethanol produced from corn and the stalks and leaves from corn and other grasses. What is the likely impact of these two events on food prices in the United States?

Any questions, comments, or discussion about PP1 should take place in our Q & A forum area of the weekly Discussion area of the course.

Reporting

All project submissions should be prepared as Word documents suitable for electronic transmission. Your PP1 report should consist of precisely five numbered pages. The first page is a cover sheet having on it only your name, course name, and number (Business Economics GM545), the academic term, and your e-mail address. After that, the response to each of the three reported exercises should be on a separate page. On each page, state the chapter and question number before answering it. Do not print the full question, as that would take up valuable space. Just list the chapter and question number.

Page 5 is your References or Works Cited Page. This does not replace in-text citations (with quotation marks or paraphrasing) or footnotes.

Use double spacing for your response; your overall responses to any exercise should not exceed one page in length (including the...