g Q.2 (D1. Equilibrium in the Aggregate demand-aggregate supply model) For each of the following separate scenarios, discuss what happens in short run and then long run. a. There is a severe drought reducing the farm yield. b. Consumers are more confident about the economy. c. There are more workers in the labor force. d. Due to stock market crash, the wealth of households drops e. The government depreciates its currency.

Until recently, hamburgers at the city sports arena cost $4.70 each. the food concessionaire sold an average of 13 comma 000 hamburgers on game night. when the price was raised to $5.40, hamburger sales dropped off to an average of 6 comma 000 per night. (a) assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. (b) if the concessionaire had fixed costs of $1 comma 500 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.