Dem3-Supply Shifters Assignment

	B	C	D	E
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2	Supply Shift Assignment
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4	P1	Directions: The following are fictitious headlines about the pecan market. In each case, decide if the information will cause a change in the current market supply for U.S. pecans sold worldwide. If so, decide if it is an increase or a decrease, and write the correct answer. For example, if you think Headline 1 means there will be a decrease in supply, write “decrease” in the first blank. If the event causes no change in supply, write “no change.” Assume that the supply at the beginning of the activity is at Curve 3. For each headline, write the number of the supply curve after the headline’s impact.
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6	1	U.S. farmers start cutting down their pecan groves to make more land available to plant more profitable crops.
7		Supply		Curve
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9	2	The price of pecan-shelling machines rises dramatically.
10		Supply		Curve
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12	3	Price of pecans falls as more consumers begin craving hazelnuts.
13		Supply		Curve
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15	4	Scientists successfully produce genetically modified pecan trees that can produce twice as many pecans per tree.
16		Supply		Curve
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18	5	Engineers develop machines that shake nuts from the trees at harvest and sweep them off the ground.
19		Supply		Curve
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21	6	The U.S. government provides subsidies to pecan producers because pecan consumption has been linked to lower heart disease.
22		Supply		Curve
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24	7	A flood destroys many pecan groves in Georgia.
25		Supply		Curve
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27	8	Pecan producers expect lower pecan prices due to declining demand for nuts.
28		Supply		Curve
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31	P2	Directions: Put each change in supply from Part I into one of the following categories, based on the reason for the change. Write the number of the headline next to the reason for the change in supply. Some categories may have more than one head- line letter, and an eventthat did not change supply should not be listed with any of the determinants.
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33			A change in the cost of productive resources
34			A change in technology
35			A change in the number of sellers in the market
36			A change in profit opportunities from producing other products
37			A change in market price expectations
38			A change in a government subsidy or tax
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