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82o 0 (Su pp 1p) Why is a fir m w illin g a n d a ble to in t r ea s e the qu a n tity s
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14 0 5 {Su pp/y) Wha t ls the law ol Suppl Giv e a n e x a m ple o f how yo u
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ha v e o bs e rv e d the \a w o f s u pply a t w o rk What :s the r e la tio n s hip
> t l o i a x r a to pr o gr e s s iv c prf JpGri Fp \ o r c gr e s s iv ü?
be tw e e n t he la w o f s u PPIy a n d t he s u pply c u w e?
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l l s e c o n d $ 1 00 3? The thi: d 31 0r v? a s u p p l y c u r v e t o t h e r i g h t o r l e f t
1 i n E m m i?n t Re v on t i eì w ha t a . e u l g £o Lrrc e s o f go v e r n m e n t r ev 6 (S.j pp!y Shiñer s) Lis t t he fiv e thin gs tha t a r e he ld co n sta n t a lo n g a ¿ n u e l f 1 \he Un ite d S!a te s? Wï \ic h þ pe s o f ta x e s a r e m o ,i t im po
rta n t m a rke t s u ppIy c u rv e a n d ide n ti' f the c ha nge In ea c h tha t w o u ld s hift
a t p a c h le v e l o f go ' / e m m e n t? Whic h tw u tax e s r ro v ide the m o s t
tha t s u pply c u rv e to the right that is tha t w o u ld inc rease s u pply
n : v e n u e to the :e de r a l go v e r n m e n t? , {Dem a n d a n d s u opl p) Ho w do yo u th in k e a c h o f the fo llo w in g
12 (EXt ðmal Hi esì Su ppo s e th e r e is a n e x te r n a l c o s t o r n e ga tiv e ex te r
fe c t e d the w o r ld pr ic e o f o il? (Us e de m a n d a nd s u pply a n a lys is ) n a lity l s s o c ia te d w ith pro d u c tio n o f a c e r ta in go o d What s w r o n g a Tax c r e dits w e r e off e re d fo r e x pe n ditu re s o n ho m e in s u latio n w ith le t t in g the m a r ke t de t e r m in e ho w m u c h o f this goo d w
ill be b The Ala s ka n o il pipe lin e w a s c o m ple t e d
pr o du c e d ? c The c e ilin g o n the pr ic e o f o il w a s r e m o v e d
3 4 E x p l a i n w h y c o u n t r i e s t r a d e w i t h e a c h d o il w a s d is c o v e r e d in the No r th Sea
o t h e r a n d w h y t h e y s o m e t i m e s a c t t o r e s t r i c t e Spo rt u t ility v e hic le s a n d m in iv a n s be c a m e po pu la r
t h a t t r a d e f The u s e o f n u c le a r po w e r de c lin e d
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it m e a n to r u n a de f ic it in the m e r c ha n dis e t r a de ba la n c e ? q u a n tity o f ic e c re a m in r e s po n s e to e a c
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a The pr ic e o f da iry c o w fo dde r in c r e a s e s b e n e fits f r o m a n d w ho is ha r m e d by SUCH r e s t r ic t io n s o n 〒 m po r ts
? b The pr ic e o f be ef de c r e a s e s
C H A P T E R 4 c o u s ly the pric e o ï s u ga r (u s ed t o pr o du t e ic e c r ea m ) in c r e a s e s
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1 (shi nin g De m a n o ) u s in g de m a n d a n d s u pp ly c u rv e s s how the
g ¢Ma r k e t s u rp lu s ) w hy w o u ld 1ì rm s a t c e pt a low e r pr ic e if the r e is a
e ff e c t o f e a c h o f the fo llo w in g o n t he m a r ket fo r c iga r ett e s :
m a r ket s u r plu s ? a A c u r e fo r lu n g c a n c e r is f o u n d
1o (Ma l t e t s ho r 1ag e] w hy w o u ld fir m s r a is e the pr ic e i f ther e is a
b The pr ic e o ï c iga r s in c r e a s e s m a r ke t s ho rt a ge a n d w hy w o u ld s o m e c o n s u m e rs p
a y tha t h0ghe r
c w a ge s in c r e a s e s u bs t a nt ia lly in s ta t es tha t gr ow to ba c c o
pr ic e At w ha t poin t w o u ld fir m s s to p r a is in g the pr ic e?
d A fe rtiliz e r t hat in c r e a s e s the yie ld pe r a c r e o f to ba c c o ls
dis c o v e r e d 4 6 p r e d i c t t h e i m p a c t o f a c h a n g e i n d e m a n d
e The r e ls a s ha r p in c r e a s e in the pr ic e o f m a tc he s lighte r s a n d o r s u p p l y o n t h e e q u i l i
b r i u m p r i c e a n d
light e r flu id q u a n t i t y
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the pr ic e is to o high o r to o lo w to be gin w ith m e a oj u s
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