Answer the questions given in the file below. Open the file in ms word.

Assignment No: 4 Student Name: ______________________________________ Student ID: ______________________ Q. 1) Refer to the information provided in Figure 4.1 below to answer the following questions. Figure 4.1 1 Refer to Figure 4.1. A decrease in the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to A) Point A on supply curve S2. B) supply curve S1. C) supply curve S3. D) Point B on supply curve S2. 1 Refer to Figure 4.1. An increase in supply is represented by the movement from A) Point B to Point C along supply curve S2. B) Point B to Point A along supply curve S2. C) S2 to S1. D) S2 to S3. 1 Refer to Figure 4.1. A decrease in quantity supplied is represented by a movement from A) Point B to Point C along supply curve S2. B) S2 to S3. C) Point B to Point A along supply curve S2. D) S2 to S1. Refer to Figure 4.1. An increase in the price of pizza sauce will cause a movement from Point B on supply curve S2 to A) Point A on supply curve S2. B) supply curve S3. C) supply curve S1. D) Point C on supply curve S2. Refer to Figure 4.1. A movement from Point A to Point B on supply curve S2 would be caused by a(n) A) increase in the price of pizza dough. B) increase in the price of hamburgers, assuming hamburgers are a substitute for pizza. C) increase in the price of pizza. D) decrease in the demand for pizza. Q. 2) Refer to the information provided in Figure 4.2 below to answer the questions that follow. Figure 4.2 Refer to Figure 4.2. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00, there will be A) an excess supply of 150 million pounds of burritos. B) an excess supply of 50 million pounds of burritos. C) an excess demand of 100 million pounds of burritos. D) an excess demand of 150 million pounds of burritos. Refer to Figure 4.2 The market is initially in equilibrium at Point B. If demand shifts from D2 to D1 and the price of burritos remains constant at $4.00, there will be A) an excess demand of 100 million pounds of burritos. B) an excess supply of 100 million pounds of burritos. C) an excess demand of 200 million pounds of burritos. D) an excess supply of 200 million pounds of burritos. Q. 3) Economists usually think of persistent shortages being caused by some interference with the market mechanism. Ask the class if they can think of free markets that experience shortages. There are numerous examples, but one that most will understand is tickets to a hot concert. These tickets are often priced below equilibrium. One reason is to create \"buzz\" about the event. Some bands claim they keep ticket prices low to be fair to their fans. Ask the class who gains and who loses when the price is set below equilibrium. This can lead to a discussion of the value different people place on their time. Question: Name two other industries or markets where shortages appear to be created for publicity and marketing purposes