Answer to Question #302344 in Microeconomics for Muna

Question

make up an example of a supply schedule for apples and give an example of something that would shift this supply curve. Would a change in the price of apples shift this supply curve?

b) During the 1990s, technological advances reduced the cost of computer chips. How do you think this affected the market for computers? For computer software? For Typewriters?

C) Using supply and demand diagrams, show the effect of the following events on the market for sweat shifts.

i) A drought in Egypt damages the cotton crop

ii) The price of leather jackets falls

iii) All universities require students to attend morning exercise classes in appropriate attire.

Answer 1

a) Supply schedule

A shift in the supply can be caused by a change in price of oranges as they two are substitutes. Change in price of apples would not cause a shift in supply curve but rather movement along the curve.

b) This technological advancement led decreased prices and hence increased demand. The demand for computer softwares would also increase and a decrease in demand for typewriters as they would be replaced by cheap computers.

c)