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1.a) Define the Law of Supply? Give an example of the Law of Supply - use two to four sentences to explain your example.
b) Indicate whether the following are considered a change in supply or a change in quantity supplied and why: i. Cold weather in Florida destroys a lot of the orange crop. Therefore, there are fewer oranges in the supermarket. ii. The price of leather goes up, This induces manufactures of leather shoes to decrease production.
2.The following events occur in the market for good F, which is a normal good: a) Good F becomes more fashionable and popular. b) The price of good G, a substitute for good F, goes down. c) Consumers anticipate declining prices for good F. d) There is a surge in the population that uses good F. e) Income falls for a large subset of consumers who buy good F. f) The cost of widgets (an input used to produce good F) increases. Identify the impact of the event to the equilibrium price and quantity of each event. HINT - I suggest you draw a supporting diagram to help you work through the logic, but the diagram will not count for any marks.
3.List all seven of the influences on buying plans that change demand, and for each influence, say whether it increases or decreases demand.
identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:
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