Reference no: EM131557688

1. Suppose the market price of fuel oil increases (preparing for the winter demand), what will refiners do to the supply of gasoline (which uses the same input resources as fuel oil)?

2. A tariff is another form of trade restriction (that behaves much like a tax). Suppose the United States imposes a tariff on imported broccoli. How should this affect the supply of imported broccoli?

3. How will a decrease in the productivity of technology affect the supply of the item being considered, assuming no increase in the availability of manufacturing materials?

4. If the price of an input resource increases (and there are no cheaper substitutes for the resource) then producers of the item are likely to ____________________ its supply?

5. A well-known State deregulated the wholesale market for electricity in which its private utility companies purchased the extra power needed to make up for generation capacity they lacked. However, the State did not also deregulate the retail rate consumers pay for the power usage. Unfortunately, the wholesale market price of electricity soared during the peak-demand, hot summer months. Thus utility companies faced bankruptcy because they could not pass the wholesale rate increases on to customers as retail rate increases. Since the State's power plants were already producing at their capacity (and capacity increases could not be undertaken for several years due to lengthy construction times), how might the States' private power plants use "rolling brownouts" to change the supply of power to the end user? The brownouts are planned power outages which ________________ the supply of power available to be consumed.