Open Word and answer the following questions. Save the document and print it when you are done. 1. What happens to the short-run supply curve if wages rise? Explain. Use Word’s Drawing Tools to create...

Open Word and answer the following questions. Save the document and print it when you are done.

1. What happens to the short-run supply curve if wages rise? Explain. Use Word’s Drawing Tools to create a graph depicting your answer.

2. What happens to the inverse short-run supply curve if wages rise? Explain. Use Word’s Drawing Tools to create a graph depicting your answer.

3. What happens to the short-run supply curve if the rental rate of capital increases? Explain.

4. What happens to the short-run supply curve if the price increases? Explain.

5. Suppose a firm is off its short-run supply curve, but at a point where MR = MC. Use Word’s Drawing Tools to a draw the profit function for this situation and label a point Z that meets the supposed conditions.