Reference no: EM132478880

Explain and illustrate graphically by drawing the appropriate shift in the supply curve for each of the following products or services in terms of the situation described. Use the graphs that are provided for you, and which can be found at the bottom of the list of the situations described. Use graph (a) for situation (a), graph (b) for situation (b), etc.

a. As the popularity of bottled water continues to rise, more companies enter the bottled water industry.

What happens to the supply curve for bottled water?

b. The cost of jet fuel increases, forcing the airlines to cancel some routes. What is the effect of this

increase in the cost of production on the number of airline flights being offered to consumers?

c. How does a new cost-reducing technological improvement in the production of fuel for automobiles made from corn affect the market supply of this type of fuel?

d. The federal government puts a subsidy on corn that can be processed into fuel. How does that subsidy affect the market supply of corn?

e. The federal government offers a large tax credit to firms who produce wind-powered turbines that can be used to generate electricity. What is the effect on the supply of wind-powered turbines?

f. Coffee producers in Brazil anticipate that they can get higher prices for coffee in the future. How may that expectation affect the current production of coffee beans.

(a) S (b) S (c) S

Bottled Water Airline flights Corn-based fuel

(d) S (e) S (f) S

Corn Wind-powered turbines Coffee