Q1. For each of the determinants of demand in Equation 2.1, classify an example exemplify the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, Chevy Volt and Nissan Leaf also complements such as gasoline and lithium ion laptop computer batteries.
Q2. When a foreign exchange trader buys 13,039,510 Mexican pesos for $1,000,000 from a trader in Mexico and then sells them to a trader in England for the equivalent of $1,000,150.21, what is this practice called? When all variations in prices are pursued in the global markets, what is the result?