1.With a pen and writing by hand, use carefully labeled graphs to illustrate supply, demand, price, quantity, equilibrium, shortages, and/or surpluses for the following situations. Use arrows to show changes. Graphs must be accurate & complete for full credit. If your answers are not readable, they will not earn credit. You are encouraged to use the back of the page (or an extra page) if more room is needed.

A. (10 pts.) Product: U.S. steel.

Situation: The price of coal goes up, so it is more costly to use in furnaces that make steel.

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B. (10 pts.) Product: U.S. computers

Situation: The U.S. government lowers the business taxes on computer manufacturers.

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C. (10 pts.) Product: U.S. airplanes

Situation: The price of substitute European airplanes goes down.

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