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## Order the answer to: 1. A change in supply causes a ______ (movement along/shift

Custom Essays business-economics Order the answer to: 1. A change in supply causes a ______ (movement along/shift

# Order the answer to: 1. A change in supply causes a ______ (movement along/shift

Question 1. A change in supply causes a ______ (movement along/shift of) the supply curve. A change in quantity supplied causes a ____ (movement along/shift of) the supply curve. 2. Circle the variables that change as we move along the supply curve for pencils and cross out those that are assumed to be fixed: Quantity of pencils supplied Price of wood Price of pencils Production technology 3. Arrow up or down: An increase in the price of wood shifts the supply curve for pencils_____; an improvement in pencil-production technology shifts the supply curve for pencils________; a tax on pencil production shifts the supply curve for pencils________. 4. Arrow up or down: An increase in the supply of a product _____ the equilibrium price and____ the equilibrium quantity. 5. If both demand and supply increase simultaneously, the equilibrium price will increase if the change in ______ is relatively large. 6. Arrow up or down: If supply increases while demand decreases, the equilibrium prices will ____. 7. If supply increases while demand decreases, the equilibrium quantity will decrease if the change in _____ (supply/demand) is relatively large. 8. Effect of Weather on Prices. Suppose a freeze in Florida wipes out 20 percent of the orange crop. How will this affect the equilibrium price and quantity of Florida oranges? Illustrate your answer with a graph. 9. Immigration Control and Prices. Consider the market for raspberries. Suppose a new law outlaws the use of foreign farm workers on raspberry farms, and the wages paid to farm workers increase as a result. Use a demand and supply graph to predict the effects of the higher wage on the equilibrium price and quantity of raspberries. Arrow up or down: The equilibrium price of raspberries will ______, and the equilibrium quantity of raspberries will ___________. 10. Market Effects of Import Ban. Consider the market for shoes in a nation that initially imports half the shoes it consumes. Use a demand and supply graph to predict the market effect of a ban on shoe imports. Arrow up or down: The equilibrium prices will ____, and the equilibrium quantity will_____. 11. Market Effects of a Tax. Consider the market for fish. Use a demand and supply graph to predict the effect of a tax paid by fish producers of \$1 per pound of fish. Use a demand and supply graph to predict the market effect of the tax. Arrow up or down: The equilibrium price will ___ and the equilibrium quantity will _____. 12. Innovation and the Price of Mobile Phones. Suppose that the initial price of a mobile phone is \$100 and that the initial quantity demanded is 500 phones per day. Use a graph to show the effects of a technological innovation that decreases the cost of producing mobile phones. Label the starting point with a and the new equilibrium with b. 13. Used Cars: Gas Guzzlers versus Gas Sippers. Consider the market for used cars. In 2008, the price of gas rose while the price of used full-size SUVs dropped and the price of used compact cars increased. a. Use a supply demand graph to show the effects of a higher gasoline price on the market for used full size SUVs. b. Use a supply demand graph to show the effects of a higher gasoline price on the market for used compact cars. business-economics
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