1. As the price of copper increases, the quantity of copper produced increases because areas with relatively high ________enter the market.

2. Wolfram Elasticity. Consider the Application Wolfram Miners Obey the Law of Supply. Suppose the initial equilibrium price is $1,144 per tonand the output is 100 tons.

a. Using the numbers related in the Application, draw a supply and demand graph showing the effects of the Allies wolfram-buying program. Your supply curve should be a long-run curve, which incorporates the entry and exit of firms.

b. Using the formula for the elasticity of supply in the earlier chapter on elasticity, compute the price elasticity of supply.

3. Copper Price Elasticity of Supply. Suppose the price of copper increases from $1,500 to $2,500 per ton and the quantity supplied increases from 9 million tons to 11 million tons. Use the midpoint formula to compute the price elasticity of supply for copper.

4. Sugar Import Ban. Suppose that initially there are no controls on sugar imported into the United States, so the price paid in the United States equals the prevailing world price.

a. If the world price is 13 cents per pound, what areas of the world supply sugar to the world market and the United States?

b. Suppose the United States bans sugar imports. The new price of sugar will be at least $ ________.

5. Long-Run Supply Curve of Lamps. Suppose each lamp manufacturer produces 10 lamps per hour. Complete the following table. Then use the data in the table to draw the long-run supply curve for lamps.

6. How Steep a Supply Curve? Consider two cities, one on a small island, and a second on a large plain.
a. Draw a long-run supply curve for housing for each city, and explain any differences between the two supply curves.
b. If demand for housing increases by the same amount in each city, which city will experience a larger increase inprice?

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Numberndusty Total Cost for Average Cost of FirmsOutput Typical Firmper Lamp $300 40 80 120 360 420