Econ- Supply
Which of the following scenarios would likely shift the supply curve for potatoes to the right (increase in supply)?
A new harvester enables farmers to bring in ripe potatoes twice as fast as they did before. correct
The table below shows the quantity of birthday cakes supplied by two producers, Producer A and Producer B. Individual and Market Supply of Birthday Cakes Quantity of Cakes Supplied Price (dollars) Producer A Producer B Market $14 160 440 600 12 120 360 480 10 80 280 360 8 40 200 240 6 0 120 120 4 0 40 40
Explanation: a. To find the market quantities supplied at each price, you add the Producer A quantity and the Producer B quantity at each price. This amount is the market quantity and the value that is entered into the "Market" column of the table. For example, at a price of $14, the Producer A quantity is 160 and the Producer B quantity is 440. Therefore, the market quantity at $14 is 160 + 440 = 600. b. To create each of the supply curves, use the price and quantities in the table and plot a point for each set. For example, for Producer A plot a point at a price of $4 and a quantity of 0, then plot a point at a price of $6 and a quantity of 0, and then plot a point at a price of $8 and a quantity of 40. Continue to do this for each price and quantity listed in the table. Repeat this for Producer B and the Market.
To find tax : Example: The market supply of cigarettes is shown in the table below. Supply of Cigarettes Quantity of Cigarettes Supplied (packs) Price (dollars) Pre-Tax Post-Tax $1.00 100 0 1.50 150 0 2.00 200 50 2.50 250 100 3.00 300 150
Explanation: a. To find the new quantities supplied, you take the quantities supplied at each price and subtract 150 from each. However, because producers cannot supply a negative quantity, for prices of $1.00 and $1.50, the post-tax quantity supplied will be zero. For an example of the other prices, at a price of $2.00, the pre-tax quantity supplied was 200. Because the quantity decreased by 150 with the tax, the post-tax quantity supplied at $2.00 would be 50. That is the amount that would be entered into the "Post-Tax Quantity Supplied" column. b. To create each of the supply curves, use the price and quantity pairs in the table and plot a point for each set. For example, for the pre-tax supply curve, plot a point at a price of $1.00 and a quantity of 100, then plot a point at a price of $1.50 and a quantity of 150. Continue to do this for each price and quantity pair listed in the table. Repeat this for the post-tax supply curve. The post-tax supply curve should be to the left of the original, as it is a decrease in quantity supplied. c. After the tax is imposed, the market supply will be the post-tax supply. To find the quantity supplied if the market price is $2.50, you go down the price column of the table until you reach $2.50. Then in the same row in the column marked "Post-Tax," you find the post-tax quantity supplied in the market at a price of $2.50, which is 100 packs.
Which of the following scenarios will most likely shift the supply of cars to the left (decrease in supply)?
The price of steel and aluminum increase. correct
Rounding decimals The table below presents the market supply schedule for roses in an average month. In anticipation of St. Valentine's Day, in February rose growers increase the quantity of roses they supply to the market by 50% at every price Market Supply of Roses Quantity of Roses Supplied (dozens) Price (dollars per dozen) Average Month February $7.00 200 300.0 correct 8.00 225 337.5 correct 9.00 250 375.0 correct 10.00 275 412.5 correct 11.00 300 450.0 correct 12.00 325 487.5 correct 13.00 350 525.0 correct
c. If the market price for a dozen roses is $11.00 in February, the quantity supplied of roses in the market will be 450.0 correct dozen.