Determine if the quantity supplied changed (which means only the price of chocolate has changed), or if the entire supply has changed. If only quantity supplied changed, circle “No Change.” If the entire supply has changed, identify if it was an increase or a decrease, and identify which determinant of supply is responsible.
Determine if the quantity supplied changed (which means only the price of chocolate has changed), or if the entire supply has changed. If only quantity supplied changed, circle “No Change.” If the entire supply has changed, identify if it was an increase or a decrease, and identify which determinant of supply is responsible.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. Determine if the quantity supplied changed (which means only the price of chocolate has
changed), or if the entire supply has changed. If only quantity supplied changed, circle “No Change.” If the entire supply has changed, identify if it was an increase or a decrease, and identify which determinant of supply is responsible.
Transcribed Image Text:DETERMINANTS OF SUPPLY
Events That Increase Supply
A) Costs of production decrease
B) Technology improves
C) Sellers expect good things in the future
D) More sellers enter the market
E) Opportunities in different markets are bad
F) Favorable natural events (e.g. weather)
Events That Decrease Supply
G) Costs of production increase
H) Technology becomes outdated
I) Sellers expect bad things in the future
J) Sellers leave the market
K) Opportunities in different markets are good
L) Unfavorable natural events (e.g. weather, war, riots, etc.)
INTERPRET HEADLINES FROM THE CHOCOLATE MARKET.
Heavy Rain in South America Equals Large Crop of Cocoa Beans
No Change
Increase
Decrease
Determinant of Supply:
High Gas Prices Causing Problems for the Chocolate Industry
Increase
Determinant of Supply
Decrease
No Change
Companies Expect Valentine's Day Will Be Biggest Chocolate Sales Day in History
Increase
Decrease
No Change
Determinant of Supply:
Transcribed Image Text:Companies Expect Valentine's Day Will Be Biggest Chocolate Sales Day in History
No Change
Increase
Decrease
Determinant of Supply:
Profits from Fruit-Flavored Candy Skyrocket
Increase
Decrease
No Change
Determinant of Supply:
Hershey's Chocolate Company Plans to Close Seven Factories
No Change
Increase
Decrease
Determinant of Supply:
Price of Chocolate Expected to Increase 30% This Year
Increase
Decrease
No Change
Determinant of Supply:
New Assembly Line Machines Added to Hershey's Chocolate Factory
Increase
Decrease
No Change
Determinant of Supply:
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