Shift the supply curve ceteris paribus to show the impact of a cut in the

# Shift the supply curve ceteris paribus to show the

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Shift the supply curve, ceteris paribus, to show the impact of a cut in the subsidy to the tobacco farmers on the supply in the tobacco market (draw a D and S diagram to show the changes on P* and Q*). ECON 104 In-Class Exercise Jui-Chi Huang 5. if products A and B are substitutes and the price of B decreases, what would happen to the demand for A? Draw a D and S diagram to show the A market and the changes on P* and Q* s ; taxes SSI, simultaneously
po Q 6. Explain graphically what the likely effect (in P* and Q* ) wtll be on the market for wine of a simultaneous decrease in both consumer incomes and producer taxes on wine while the impact of change in producer taxes on wine outweighs that of consumer incomes? 7. People demand less of product X when the price of product Y decreases. This means X and Y are (Complements; Substitutes; Not related) 8. An increase in demand for oil along with a simultaneous increase in supply of oil will: 9. In the space below each of the following, indicate the effect [increase (+), decrease on equilibrium price (P* ) and equilibrium quantity (Q*) of each of these changes in demand and/or supply. Q* a. Increase in demand, supply constant b. Increase in supply, demand constant c. Decrease in demand, supply constant d. Decrease in supply, demand constant 10.In the spaces below each of the following, indicate the [increase (+), decrease (-), orindeterminant (?)] on equilibrium price (P) and equilibrium quantity (Q) of each of thesechanges in demand and/or supply.Q* a.Increase in demand, increase in supplyb.Increase in demand, decrease in supplyc.Decrease in demand, decrease in supply d. Decrease in demand, increase in supply 11. A price ceiling or a price floor?