Through october 2014, the u. s. government administered two programs that affected the market for cigarettes. media campaigns and labeling requirements, which are still in place, aim at making the public aware of the health dangers of cigarettes, and until 2014 the department of agriculture also maintained price supports for tobacco. under this program, the supported price was above the market equilibrium price and the government limited the amount of land that could be devoted to tobacco production. were these two programs at odds with the goal of reducing cigarette consumption? 1.) using the line drawing tool, draw the effective price support in the market for cigarettes before the media campaigns and labeling requirements produced an effect. label this 'support'. 2.) using the line drawing tool, illustrate the effect of the media campaigns and labeling requirements on the market for cigarettes. properly label this line.

When the federal reserve buys and sells bonds to member banks, it is called a. monetary policy b. reserve ratio c. interest rate adjustment d. open market operations

Amanda works as an industrial designer

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.