Question: Graphically represent the repercussions on the supply curve in each of the following situations and mention if there is a change in the supply or
Graphically represent the repercussions on the supply curve in each of the following situations and mention if there is a change in the supply or a change in the quantity supplied:
a) The government eliminates the gas subsidy.
b) Lower the interest rate: how will clothing production be affected?
c) A decrease in the price of bananas, on its production.
d) A new invention is made that allows to use fewer resources in the production of Ipods.
e) The government decides to tax rice production with a 12% tax.
f) The government increases the salary of workers: how will companies that use large amounts of labor be affected?
g) An increase in the price of shoes, on the production of shoes.
h) The government decides to subsidize the production of tropical fruits.
i) The VAT tax is reduced from 12% to 8%.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
