Problem set 1For the scenarios discussed below, use supply and demand curves and a graph to analyze what will happen to both price and quantity in equilibrium given the information available below. Graphs MUST be half a page each. When it is impossible to pin down the direction of the effect, discuss what is more likely in your opinion and why. If you are unfamiliar with any of these companies, feel free to research them online so you know what they make and what quality levels and price tiers they are focused on. Make sure to differentiate between movements of curves and movements on curves. For example, you could say something like this: “the supply curve moves to the right. As a result, price decreases, and quantity supplied (and demanded) in equilibrium increases”.Please note these problems include additional challenges, that the book does not explicitly discuss. Those challenges are:(a) it is possible for both the demand and supply curve to move, because more than one change affected the economy; You will need to consider both effects on price as well as quantity(b) if both supply and demand curves move, and you think the outcome, although theoretically uncertain, is clear to you – please explain why and detail your assumption. For example, you can say: “the demand curve moves to the right, the supply curve also moves to the right. This affects price in 2 opposite ways. But I think price will go up because of (to be completed)”(c) It is good practice to consider the market you want to analyze. For example, a coke bottle can belong in the “soft drink market” or in the “coca cola drinks market” which is a smaller one. Which one you should choose depends on what you would like to analyze.(d) Remember that when you are drawing a graph a certain way, you are making an implicit assumption. Check if your result would change if you drew the graph a bit differently (but still in a way consistent with question data)Here are the scenarios you need to discuss.You are the CEO of Walmart. Your economists inform you that they predict a recession starting next year. Analyze what you expect what will happen to the price and quantity of a typical good sold at your stores. Discuss the location of the store as well as the demography of the neighborhood.You are the CEO of General Motors. Your economists inform you that the price of steel is predicted to go down 5% next year, but the wages you pay are expected to go up 10%.You are the CEO of Whole Foods. Your market research people inform you that Aldi is to open several new branches in Chicago, but not in Los Angeles. Analyze both the Chicago market and the Los Angeles market (separately).You are the CEO of Tiffany. Your economists inform you that they predict a recession starting next year. Analyze what you expect what will happen to the price and quantity of a typical good sold at your stores.You manage the CTA. Your economists predict a recession next year. Your weather experts predict a very hard, cold winter. Analyze the market for bus rides for next winter.You are the CEO of American Airlines. Your market research people inform you that Southwest is about to enter the Northeastern US market, where it does not currently operate. Analyze the market for flights in the Northeast.You are the CEO of Philip Morris. The FDA announces that cigarettes are unhealthy. Analyze the market for cigarettes. What could you do to increase profitability given the news?You are the CEO of Toyota. Your engineers have just developed a new robot that reduced the costs involved with manufacturing a new car by 10%. The robot is not available to your competitors. Analyze the car sales market. Remember to differentiate between your supply and supply by other firms and show how each is affected as well as what happened to total quantity, price, and your market share. Hint – remember that market supply is the sum of your supply and your competitors’ supply.You are the CEO of Coca-cola. The FDA introduces a $2 per meal tax on fast-food (but not on drinks). Analyze the market for your products. It is the fast food sellers who are obliged to pay the tax to the state.You are the CEO of Coca-cola. The price of sugar increases. Analyze the results in both the regular Coke and Diet-Coke markets.

In a critical essay, analyze how currency depreciation stimulates exports. Evaluate the three major approaches to analyzing the economic impact of currency depreciation: the elasticities approach, the absorption approach, and the monetary approach. Compare and contrast the three approaches and provide examples that distinguish them from each other.Directions:_Your essay is required to be five to six pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements.Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles. Use the Saudi Digital Library to find your resources.Use Saudi Electronic University academic writing standards and follow APA style guidelines.It is strongly encouraged that you submit all assignments into Turnitin prior to submitting them to your instructor for grading. If you are unsure how to submit an assignment into the Originality Check tool, review the Turnitin—Student Guide for step-by-step instructions.Review the grading rubric to see how you will be graded for this assignment.-----This week, you have a Critical Thinking Assignment that is due. Please review the assignment directions now, and contact your instructor with any questions. Additionally, your next quiz encompassing material from Modules 11 and 12, which is a graded exercise for this module, must be completed by the end of this weekLearning OutcomesAnalyze how the exchange rate adjustments affect the balance of payments.Evaluate how currency depreciation stimulates exports.ReadingsRequired:Chapter 13 in International EconomicsSule, I., & Shuaibu, M. (2020). Current account behavior, real exchange rate adjustment and relative output in Nigeria. Journal of Economic Development, 45(3), 77-99.