1. (15 points) Graphite is an input into the production of pencils. If the pencil market is perfectly com- petitive, then in the short-run an increase in the price of graphite will cause: (a) (5 points) The supply curve for pencils to shift up: True or False? (b) (5 points) An increase in the market price for pencils. True or False? (c) (5 points) The demand curve for pencils to shift down. True or False? For each of (a), (b), and (c) above, indicate whether the statement is True or False? Explain each briey. Provide a graph illustrating your