Show the effect this shock has on the market for cashews by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 30 24 18 6 0 0 12 24 36 Supply Demand QUANTITY (Thousands of tons) 48 Total Revenue (Thousands of Dollars) 60 Demand - Supply A number of the growers are concerned about the price decrease initiated by the stretch of favorable weather conditions, as they believe it will lead to decreased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using the midpoint method, the price elasticity of demand for cashews between the price levels of $15 and $12 per ton is between these two points, demand is Thus, you can conclude that the grower's claim is will due to the favorable weather conditions. , meaning that because total revenue Confirm your previous conclusion by calculating total revenue in the cashew market before and after the favorable weather conditions. Enter these values in the following table. Before Favorable Weather Conditions After Favorable Weather Conditions

Simplest Possible Graph. Consider the following table of observations in the market for juice oranges: Year 1 2 3 Price Quantity $5 $7 $4 100 80 110 Demand is assumed to be stable over time. Use the line drawing tool to draw a supply line for each of the three years to generate the above equilibrium price-quantity combinations. Properly label these lines: S₁, S2, and S3. Carefully follow the instructions above, and only draw the required objects. Price ($) 10- 9- 8- 7- 6- 4- 3- Juice oranges Demand 2- 1- o+ 50 60 70 80 90 100 110 120 130 Quantity of oranges G

1 Market Change Demand Supply # 2 Market Change Demand Supply What is likely to happen to At the beginning of March, toilet paper became difficult to find in Almond Milk if the Price of Soy Milk rises. stores. Why? Why? #3 Market Change Demand Supply #4 Market Change Demand Supply Some TCSG Schools have During base realignment, the number of soldiers at military installations is changed. If there were an increase in soldiers at Fort masonry (bricklaying) programs. How would this affect housing markets in the area if such a program were Benning, how would this affect gas to come to CTC? markets? Why? Why? #S Market Change Demand Supply #6 Market Change Demand Supply Minimum wage rises. Recently, the price of pools rose in stores. Why? Why? #7 Market Change Demand Supply #8 Market Change Supply Demand Over the past few years, You start a coffee shop in the there have been increased Student Center at CTC. You notice tariffs on goods made that you sell about the same amount of coffee and…

CHAPTER 5 即 Date Name Name WHAT FACTORS AFFECT SUPPLY?, CONTINUED excise tax VOCABULARY HUNT In change in supply your notes circle each term. labor productivity input costs Be sure you understand its meaning. APPLICATION Mark It Up! ZAe Baihn Cormered BAAJi 222 Z. The plan to increase productivity by canceling coffee breaks flopped. O Mike Baldwin/www.CartoonStock.com 7. Reread your notes on "Changes in Supply." On the cartoon, underline or circle the factor affecting supply. 8. How did the business owner try to change supply, and what was the result? 9. How would the supply curve change because of the situation in the cartoon? 10. What is the main technique the cartoonist uses to deliver the message? Explain. Original content Copyright Houghton Mifflin Harcourt Publishing Company. Changes to original content are the responsibility of the instructor. 34 Reading Study Guide Economics Chapter 5: Supply