llustrate the following withsupply and demandcurves:

A. With increased access to wireless technology and lighter weight , the demand for laptop computers has increased substantially. Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shift of demand prices have fallen.

B. Cranberryproductionin Massachusetts totaled 1.8 million barrels in 2004, a 28 percent increase from the previous year’sproduction.This year’s crop yield averaged 127.9 barrels per acre, an increase of over 30 barrels per acre from the 2003 crop. But demand increased by even more than supply, actually pushing 2004 prices above 2003 prices.

C. During the high-tech boom late in the 1990s San Jose office space was in very high demand and rents were very high. With the national recession that began in March 2001, however, the market for office space in San Jose (Silicon Valley) was hit very hard, with rents per square foot falling. In 2005, theemploymentnumbers from San Jose were rising slowly and rents began to rise again. Assume for simplicity that no new office space was built during the period.

D. The steel industry has been lobbying for high taxes on imported steel. Russia, Brazil, and Japan have been producing and selling steel on world markets at $22 per metric ton, well below whatequilibriumwould be in the United States with no imports. If no imported steel were permitted into the country, theequilibriumprice would be $35 per metric ton. Show supply and demandcurvesfor the United States assuming no imports; then show what the graph would look like if U.S. buyers could purchase all the steel they wanted from world markets at $22; show the quantity of imported steel. In 2002 , President George W. Bush imposed a 30 percent tariff on imported steel.

Attachments:

Homework-Week….docx