Question1. The market for chicken sandwich, considered a normal good, is in equilibrium. Analyze the effect of the following events on equilibrium price and equilibrium quantity of chicken sandwich.

(a) An increase in customers' preference for beef
(b) Producers expectation of future profit

Question2. President Obama is considering implementing trade tariffs and quotas against US trading partners. As head of the President's Economic Advisory Team:
(a) Argue the point that free trade is beneficial to the US and that the President should not implement the proposed trade restriction.
(b) Examine the benefits and drawbacks of each of the President's proposal:
a. Tariffs
b. Quotas

Question3. What causes the United States to have comparative advantage over other countries in certain products?