1. An Arizona student claims to have spotted a UFO over the desert outside of Tucson. How will his claim affect the supply (not the quantity supplied) of binoculars in Tucson stores?
2. What will happen to the equilibrium price and quantity of oranges if the wage paid to orange pickers rises?
3. How will an increase in the birth rate affect the equilibrium price of land?
1.Supply will not change, but the quantity supplied would increase in response to the higher price for binoculars. There would be a likely increase in the demand for binoculars, thereby increasing the selling price. 2.Increased cost of production, supply decreases, supply curve shifts leftward, equilibrium price increases, quantity decreases. 3. Increase…
in population, increase in demand, demand curve shifts rightward, equilibrium price and quantity both increase (the quantity of land is fixed, but the quantity of land offered for sale would increase due to changes in opportunity costs) .