Consider the demand for avocados. Does an increase in average income cause a shift of the demand curve for avocados or a movement along the demand curve? Explain briefly An increase in average income causes A. a shift of the avocado demand curve because only a change in the price of avocados causes a movement along the avocado demand curve.

B. a movement along the demand curve for avocados but a shift in the supply curve for avocados.

C. a shift of the avocado demand curve because consumers will not spend any of the new income

D. a shift of the avocado demand curve because all factors including the price of avocados cause quantity to change for a given price.

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

What business practice contributed most to andrew carnegie’s ability to form a monopoly?