Chapter 3 Demand, Supply, and Market Equilibrium

45) Describe the changes in the variables that will cause supply for a product to increase, shifting the supply curve down and to the right.

46) Describe the changes in the variables that will cause supply for a product to decrease, shifting the supply curve up and to the left.

47) As a result of advances in technology, cellular telephones have become cheaper to produce. Illustrate the effect of this change on the market for cellular telephones.

48) Using a graph, illustrate the effect that an increase in production costs will have on the equilibrium price and quantity of a good.

49) Explain what would happen to the equilibrium price and quantity of oranges if the supply of oranges increased while the demand for oranges decreased.

50) Explain what would happen to the equilibrium price and quantity of pineapples if the supply of pineapples decreased while the demand for pineapples increased.

51) Explain what would happen to the equilibrium price and quantity of iPhones if the supply of iPhones increased while the demand for iPhones also increased.

52) Explain what would happen to the equilibrium price and quantity of gasoline if the supply of gasoline decreased while the demand for gasoline also decreased.

53) Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases.

54) Explain what will happen to the equilibrium price and quantity of satellite TV service if the wages of the workers who provide the satellite TV service increase while at the same time the price of cable television service (a substitute for satellite TV service) also increases.