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B. Critical Analysis (20 points)

Please write five paragraphs on the effects of a hurricane on the economy of Florida. You will use supply and demand analysis to illustrate the likely effects of a hurricane on the equilibrium price and quantity in one of the markets/industries in Florida. The following markets are examples of markets in Florida based on Economic Perspectives (http://econperspectives.blogspot.com/2008_05_01_archive.html):

a). the market for orange juice. (Hint: The oranges grown in Florida are primarily used to make orange juice.)

b). the market for plywood. (Hint: Plywood is used to protect windows from the high winds associated with hurricanes.)

c). the market for batteries. (Hint: Hurricanes frequently knock down power line, causing many people to be without electricity for days or weeks.)

d). the market for admission tickets to theme parks in Orlando. (Hint: Assume the hurricane causes heavy rain and wind throughout the Orlando area. Most of the attractions at these parks are outdoors.)

You must select one specific market (for example: the market for orange juice). Your analysis will consist of five sections. Each section must contain at least one paragraph. Each paragraph must contain at least three sentences:

1) Explanation of issue (4 points): You will clearly state the problem/issue and include any information necessary to fully explain the issue.

2) Evidence (4 points): You will select appropriate evidence to thoroughly investigate the problem, and critically evaluate the viewpoints.

3) Assumptions (4 points): You thoroughly analyze your assumptions and include relevant contextual information.

4)Your position (perspective, thesis/hypothesis; 4 points): You will present a hypothesis that takes into account the complexities of the issue.

5) Conclusions and related outcomes (4 points): Your conclusions will be logically tied to the evidence and outlined.