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For east of the oi ippcurve for beemeras ld,ifthere is an increaseerdecreasendemnd, mdeplinuhy answer the qoestion then illustrate the change that will occur on the grap the new supply line and 6. For each problem, below First draw the oniginal supply line and label itS1. Then draw label it S2 a. Socy purchases neur technology that will allow more Play station 3s to be produced each hour, The wi Supply.(4 marks
b. Company B attempts to increase profits by raising prices. How will his curve? (4 marks) c. Droughts in the Midwest cause food prices to soar. This will case Richh : 1パト its supply ofgrocery products (4 marks) prices to soar. This will case Richartmato d. The govemment places strict pollution regulations on automotive producers in Detroit. How will this affect Fords supply levels? (4 marks) e. A large forest fire destroys thousands of acres of woodlands about to be harvested. cause the Harlan Cabinet Company to 4 marks) will ... its supply of cabinets and cupboards
E. A development firm has bought all the land around a large lake in northern Arkanses. The local govenment places a high properly tax on the land to raise money for a nearby school What type of supply does the land have? (4 marks) g The government agency deels too much wheat is being produced and stops all subsidies to wheat farmers for one year. This will case wheat production to (4 marks) ー 一一 Ł. Chevrolet announces it will stop production of Corvettes after next year. Furthermore, the final edition Covette is a limited series and only 5,00 will be produced. Draw the supply curve for Corvette production for next year. (4 marks)
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Answer #1

6.

A.

Supply will increase and shift to the right, because due to new technology, more play stations will be produced.

B .

Supply curve will shift to the left and price will increase and quantity will decrease.

C.

Increase the supply of groceries, as the price is rising. Though the movement will be along the graph.

D.

Supply level will decrease and supply curve will shift to the left due to stringent regulations:

E.

Decrease the supply and supply curve will move to the left. It will happen as raw materials for cabinet and cupboards are destroyed and price of raw material is increased.

prnc $2 SI S2 S1 S1 S2 Quantity pric S1 S1

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