Reference no: EM13243364

Illustrate the following with supply anddemand curves:

a.With increased access to wirelesstechnology and lighter weight, the demand for laptop computershas increased substantially. Laptops have also become easier and cheaper to produce as new technology has comeonline. Despite the shift of demand, prices havefallen.

b.Cranberry production in Massachusettstotaled 1.97 million barrels in 2006, a 39 percent increasefrom the previous year's production. This year's cropyield averaged 140.9 barrels per acre, an increase of over 40 barrelsper acre from the 2005 crop. But demand increased by evenmore than supply, actually pushing 2006 prices above 2005prices.

c.During the high-tech boom in the late1990s, San Jose office space was in very high demand and rentswere very high. With the national recession that beganin March 2001, however, the market for office space in San Jose(Silicon Valley) was hit very hard, with rents per squarefoot falling. In 2005, the employment numbers from San Josewere rising slowly and rents began to rise again. Assumefor simplicity that no new office space was built during theperiod.

d.Before economic reforms were implementedin the countries of Eastern Europe, regulation held theprice of bread substantially below equilibrium. Whenreforms were implemented, prices were deregulated andthe price of bread rose dramatically. As a result,the quantity of bread demanded fell and the quantity of breadsupplied rose sharply.

e.The steel industry has been lobbying forhigh taxes on imported steel. Russia, Brazil, andJapan have been producing and selling steel on world markets at$610 per metric ton, well below what equilibrium would be in the United