Question

 The graph input tool

 Some questions allow you to interact indirectly with a graph by manipulating a corresponding table of entries. In this type of question, you will not be graded on the final appearance of the graph, but rather you will use the graph to help you answer the questions that follow.

 You can adjust the values in the accompanying table for fields with white backgrounds. Once you have selected a field, you can either enter a new value or adjust the existing value by selecting the arrows (+ to increase and - to decrease)- You can exit the entry field by hitting Enter (or Return) on your keyboard or by selecting a place elsewhere on the problem. To reset a field to its starting value, select the circular refresh arrow that appears next to the selected field.

 Experiment with entering different values in the editable fields. Observe what changes take place on the graph itself and also in the uneditable fields in the table. Don't worry about understanding the economics behind the question, just make sure you understand how to manipulate the values on the graph.

 Reset the graph to the initial state. Then, for each action described in the following table, indicate which elements on the graph (if any) are affected. Check all that apply. (Note: After changing the value in each field, be sure to again refresh back to the initial value before proceeding to the next row in the table.)

 True or False: You will not be graded on the final appearance of the graph.

•  True

•  False

Answer 1

Entering 15.00 into the Price of Khakis field

Quantity Demand Quantity Supplied . Green Line Shortage

Explanation: With decrease in price of Khakis from 35.00 to 15.00, it will increase quantity demanded but will decrease quantity supplied and will change the green line to the new quantity demanded and supplied and it will create shortage of pairs of Khakis due to decrease in supply due to above decrease in price.

Entering 5.00 into the price of Denim field.

Supply Curve Quantity Supplied Surplus

Explanation: Due to decrease in cost of the Denim, it will increase quantity supplied by the supplier and will shift the supply curve to the right and will crease create surplus situation.

Entering 100.00 into the Price field

Green Line Quantity demanded Quantity supplied Surplus

Explanation: It will shift the green line since quantity supplied will get increased due to increase in price since supplier will increase the supply in order to increase his/her profit. Quantity demanded will get decreased and will become zero and this will create a surplus situation.

True or False: You will not be graded on the final appearance of the graph.

True

Explanation: Above statement is given in the question and final appearance of graph will not be graded.