1- The Market: Potato chips. The Event: A fungal disease affecting potatoes brea

Question

1- The Market: Potato chips.

The Event: A fungal disease affecting potatoes breaks out in Idaho, ravaging the season’s potato crop. Simultaneously, new research shows potato chips to be one of the healthiest foods you can eat.

Given the above information, we can most reasonably expect that in the market for potato chips the supply curve will:

not shift

2- A major technological advance favorably affecting productivity in all industries would be represented on a production possibilities curve as:

3- Which of the following answers the economic question: who gets to consume goods?

Explanation / Answer

a) Shift left.

A reduced supply will increase the price and decrease the quantity shifting the curve to the left. increased demand will shift the demand curve to the right not affecting the supply curve at all. The answer is "Shift left".

b) "An outward shift of the entire curve" as the capacity has increased in the economy.

c) Land developer in Socal decides whether to build housing or an amusement park. The potential consumer will be families or just children.

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