Question

1. an increase in the price of hay would cause the supply of beef to (increase or decrease).

which determinant causes this change?
which way will the curve shift? (left/right) draw the new supply curve

1. the government lowers taxes on cattle ranchers so the supply of beef will (increase or decrease).

which determinant causes this change?
which way will the curve shift? (left/right) draw the new supply curve

1. mattel expects the new barbie to be the \it\ toy at christmas; the supply of barbie’s will (increase or decrease).

which determinant causes this change?
which way will the curve shift? (left/right) draw the new supply curve

1. the peanut butter manufacturers are all buying new equipment that can make peanut butter 2 times faster than before; the supply of peanut butter will (increase or decrease).

which determinant causes this change?
which way will the curve shift? (left/right) draw the new supply curve

1. there was a massive forest fire that ravaged the pine belt; the supply of new homes will (increase or decrease).

which determinant causes this change? which way will the
curve shift? (left/right) draw the new supply curve

Explanation:

Question 1

• Hay is an input (resource) for cattle (used to produce beef). An increase in hay price raises production costs for beef producers.
• When production costs increase, producers supply less at each price level, so supply of beef decreases.
• The determinant is "Cost of Inputs (Resources)".
• A decrease in supply shifts the curve left (less quantity supplied at each price).

• Lowering taxes on cattle ranchers reduces their production costs (they keep more revenue per unit produced).
• Lower production costs encourage producers to supply more at each price, so supply of beef increases.
• The determinant is "Taxes (Government Policy)".
• An increase in supply shifts the curve right (more quantity supplied at each price).

• Mattel expects high demand for Barbie at Christmas, so they will produce more now to meet future demand (or to take advantage of expected high prices).
• Expectations of future demand (or prices) influence current supply. If they expect higher future demand, they increase current supply.
• The determinant is "Producer Expectations".
• An increase in supply shifts the curve right.

Answer:

• Supply of beef: Decrease
• Determinant: Cost of Inputs (Resources)
• Curve shift: Left

Question 2