1. (0, 5, or 10)Now assume that an early freeze has decreased the apple harvest, and the new supply schedule is shown below.

2a. Has supply increased or decreased?

2b. What are the new equilibrium price and quantity? (Note: the demand curve is unchanged.)

Price Quantity Demanded Quantity Supplied

$14 400 800

$12 600 600

$10 800 400

$8 1,000 200

Do you think a nation's output (such as food and shelter) should be distributedstrictlyaccording to income or according to some other standard (such as basic human need)? Briefly explain your answer.