Chapter 4 
Problem Set 2
Supply

You are given various goods or services followed by a statement. 

Decide if this statement would shift the supply curve left or right or would not change it.

Good: Wine

• The government reduces all tariffs on imported wine from South America.

Good:  Ink Jet Printers

• Laser printers have a higher profit margin than ink jet printers.

Good:  Wooden furniture

• Forest fires ravage 35% of all commercial timber.

Good:  Candy

• New technology increases sugar production.

Good:  New web search companies

• A shortage of programmers increases wages for software technicians.

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