Problem 1. Find a product (possibly a commodity) traded in the global market and examine how the price of the product has changed over the past 10 years. How have these price changes reflected the law of supply and demand? Be sure to discuss both movement along the supply/demand curve as well as shifts in the curves. (A graph in excel, as an attachment, would show understanding).
Problem 2. Suppose there are two services offered in the economy: dance clubs and college education. Both require the use of limited resources, but not all of the resources used in each one can be readily transferred to the other. What is the effect on the economyâ??s production possibility curve (reflecting these two services) in both the short and long run if it shifts resources from dance clubs to education?