2. The demand function for potatoes per month is given by Q = 104 – 40p + 20pt + 0.01Y, where Q = the quantity of potatoes, p = price of potatoes, pt = price of tomatoes, and Y = income per month. Pt is currently $0.80 per pound). Derive the demand curve for potatoes from the data provided when income is $4,000 per month. Derive the new demand curve when income increases to $5,000 per month. ON a graph show the change in the demand curve resulting from the growth in income. 3. Many occupations require some form of ‘occupational licensing’ that requires an examination. Explain and show what impact you think such requirements have on the supply and demand for the services of an occupation that has such a requirement. If the examination raises the average ability in that occupation as perceived by the public how might that alter your answer? 4. Some governments place a ceiling on the interest rates (usury laws) that borrowers must pay when taking out loans. Using the supply and demand model, describe the differences in the quantity of consumer loans made in states with usury laws versus states that do not have such laws. Do you think such laws are beneficial?

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Data Given The monthly demand function for potatoes is Q 104 40p 20pt 001Y where Q is the ... View the full answer