Chapter 4
Problem Set 2
Supply
Answers
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.
Supply shifts right
Good: Ink Jet Printers
-
Laser printers have a higher profit
margin than ink jet printers.
Supply shifts left
Good: Wooden
furniture
-
Forest fires ravage 35% of all commercial
timber.
Supply shifts left
Good: Candy
-
New technology increases sugar
production.
Supply shifts right
Good: New web
search companies
-
A shortage of programmers increases wages
for software technicians.
Supply shifts left