Question: Take a linear demand curve like that shown in Figure 6-5, where the range of prices for which demand is elastic and inelastic is labeled.

Take a linear demand curve like that shown in Figure 6-5, where the range of prices for which demand is elastic and inelastic is labeled. In each of the following scenarios, the supply curve shifts. Show along which portion of the demand curve (that is, the elastic or the inelastic portion) the supply curve must have shifted in order to generate the event described. In each case, show on the diagram the quantity effect and the price effect.
a. Recent attempts by the Colombian army to stop the flow of illegal drugs into the United States have actually benefited drug dealers.
b. New construction increased the number of seats in the football stadium and resulted in greater total revenue from box - office ticket sales.
c. A fall in input prices has led to higher output of Porsches. But total revenue for the Porsche Company has declined as a result.

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