Set all variables to their baseline values.

1) How much spaghetti is supplied when its price is $20 per plate?

2) How much is supplied when price is $10 per plate?

Set all variables to their baseline values.

3) When the price of spaghetti is $10 per plate, how much total revenue from sales do

producers expect?

Set all variables at their baseline values.

4) When the price of spaghetti is $15 per plate, how much total revenue from sales do

producers expect? [Compare your answer to the answer to 3).]

5) Set all variables to their baseline values. With the price of spaghetti at $12, how much

does supply change when the wage rate (price of labor) rises to $8.00?

6) Set all variables to their baseline values and set the price of spaghetti to $12. Increase the

price of sauce to $7 per unit. Does the supply of spaghetti increase or decrease?

7) Based on the analysis of the previous question, by how much did the supply of spaghetti

change when the price of sauce increased from $3 to $7 per unit?

8) Set all variables to their baseline values, and set the price of spaghetti to $12. If a tax of

$5 per unit is placed on all spaghetti sales, how much does supply change?

9) Set all variables to their baseline values, and set the price of spaghetti to $6. If a tax of $5

per unit is placed on all spaghetti sales, how much does supply change?

10) Set all variables to their baseline values, and set the price of spaghetti to $12. If a subsidy

of $2 per plate is paid to sellers, how much does supply change?

11) Set all variables to their baseline values. With a subsidy of $5 per plate, what would the

price of spaghetti have to be to make supply equal to 4,000?

12) Set all variables to their baseline values, and set the price of spaghetti to $8. What would

the price of labor (wage rate) have to be to make supply equal to 2,500?"

Set all variables to their baseline values, and set the price of spaghetti to $10. Now set to tax to

$5.

13) By how much must the price of spaghetti rise to keep spaghetti supply at its pre-tax level?