Draw the following story on 1 graph:

Imagine that last week the newspaper headline was:

1. A new technology has substantially improved the jam making process.

2. The price of peanut butter, complementary good to jam, has fallen by 20%.

First draw the original supply and demand curves for jam, and show the equilibrium price and quantity. Then add the ˜headlines” to it. What happened to equilibrium quantity and price in your graph? Label your graphs. You may draw your graph freehand, take a picture of it and attach.

1. Suppose both supply and demand in a market arerelatively inelastic. Will a tax placed on the product in market generate arelatively large or small deadweight loss? Why?

2. If the world price of a good exceeds thedomestic price of the good, will the country export or import the good. In thisscenario who gain from free trade: Domestic consumers or Domestic producers?Explain.

typed using Times New Roman (size 12,double-spaced) font.

WORD format

No matching ratio

No refrence need.

Q. 1. During the Second World War, Germany’s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve?

Q. 2. What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?

Q. 3. Are differences in geography behind the differences in absolute advantages?

PLEASE ANS IN WORD FILE

Please solve the following Empirical Exercises from the textbook: E3.2, E4.2, E5.3.

If you use R for those empirical questions, you need to submit a pdf file generated by R markdown. The file should include your answers for each question as well as specific R codes to calculate those answers.

If you use a software package different from R, you need to type your answer and the codes. There also exist markdown methods for Stata, Python and Matlab.

Q. 1. Suppose both supply and demand in amarket are relatively inelastic. Will a tax placed on the product inmarket generate a relatively large or small deadweight loss? Why?

Q. 2. If

free trade: Domestic consumers or Domestic producers? Explain.

APA, No plagiarism. at least 150 words for each question