s2 s1 st Match each scenanio with the appropriate diagram a

s2 s1 st Match each scenanio with the appropriate diagram a. To take advantage of high prices for snow shovels during a snowy winter, Alexander Shovels, Inc. decides to increase output c. In the six months following the Japanese earthquake and tsunami in 2011, production of automobiles n Japan declined by 20 percent. MacBook Air

Solution

1. For the sentence (a) the appropriate answer would be diagram (4). As stated due to increase in price the output is increased, the increase is only to to increase in price so the shift will be slong the supply. The change from point A-B indicates the same.

2.For the sentence (b), the appropriate answer would be diagram (3). As it is not mentioned whic factors are considered by other smartphone companies to increase their production, so there will be an overall shift in the supply curve.

3.For the sentence (c), the appropriate answer would be diagram (1). Since natural factor is responsible for decline of production so the supply curve will shift towards left.