Question

in the market for oranges suppose a left ward shift in supply causes an increase in the equilibrium price of oranges. the movement from the original to the final equilowould entail

QUESTION9 In the market for oranges, suppose a leftward shift in supply causes an increase in the equilibrium price of oranges. The movement from the original to the final equilibrium would ental an increase in the demand for oranges as they become more scarce. As a result of the higher price, the demand curve for oranges will shift to the left a decrease in the supply of oranges. a movement along the original demand curve to a point with a higher price and a lower quantity QUESTION 10 If a car manufacturer purchases new cost-reducing technology for its assembly line, we would expect an increase in demand for cars a rightward shift of the supply curve of car an increase in the quantity of cars demanded on the way from the original equilibrium to the new equilibrium. QUESTION 11 Wheat is the main input in the production of flour. If the price of wheat increases, other things constant, we would expect (choose all that apply) a decrease in the demand for flour a decrease in the supply of flour a decrease in quantity demanded of flour on the way from the orginal equilibrium to the new equilibrium.

Answer 1

9) a movement along the original demand curve....

Leftward shift in supply is a decrease in supply and there is no change in demand. Decrease in supply leads to decrease in quantity demanded due to higher price which implies an upward movement along the original demand curve.

10) a rightward shift in the supply of cars

Decrease in cost of production leads to increase in supply represented by rightward shift in supply curve.

11) a decrease in the supply of flour

Increase in price of input leads to increase in cost of production and thus decrease in supply.