1. Arrow up or down: An increase in the price of wood shifts the supply curve for pencils __________; an improvement in pencil-production technology shifts the supply curve for pencils __________; a tax on pencil production shifts the supply curve for pencils __________.
2. Arrow up or down: An increase in the supply of a product __________ the equilibrium price and __________ the equilibrium quantity.
3. If both demand and supply increase simultaneously, the equilibrium price will increase if the change in __________ is relatively large.
4. Suppose the price of iPhones has fallen dramatically. This means that the quantity of iPhones supplied will __________ (increase/decrease), ceteris paribus.
5. In 2011, three million plasma TVs were purchased at $950 each, while in 2012, four million plasma TVs were purchased at $800 each. What might have caused this change?
6. Arrows up or down: The harmattan (dry wind) _______ the supply of cocoa from West Africa and _______ the world price of cocoa. (Related to Application 5 on page 113.)
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