Skippy loves peanut butter. skippy reads on the internet that 75 percent of the peanut crop in the south has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. as a result,
a. skippy’s demand for peanut butter decreases as he considers buying almond butter.
b. skippy’s demand for peanut butter will increase, but not until the end of the year.
c. skippy’s demand for peanut butter shifts left today.
d. skippy’s demand for peanut butter increases today.

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 is a sort of auction for stocks in which traders verbally submit their offers?

Todd and jim learned that in building a business plan, it was important for them to: