3. Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced (a) an increase in supply. (b) a decrease in supply. (c) an increase in the quantity supplied. (d) a decrease in the quantity supplied. (e) an increase in the quantity demanded. 4. Refer to the figure below, if the current market price is $25, the market will achieve equilibrium through Price $25.00 20.0 15.00 10.00 200 10 500 600 700 800 Quantity (a) a price decrease, decreasing the quantity supplied and increasing the de- mand. (b) a price decrease, decreasing the supply and increasing the demand. (c) a price decrease, decreasing the supply and increasing the quantity de- manded. (d) a price decrease, decreasing the quantity supplied and holding the quantity demanded constant. (e) a price decrease, decreasing the quantity supplied and increasing the quan- tity demanded. 5. In recent years, the cost of producing organic produce in Canada has decreased largely due technological advancement. At the same time, more and more Cana- dian consumers prefer organic produce over conventional produce. Which of the following best explains the effect of these events in the organic produce market?Quantity of Pillows Quantity of Blankets Choice Produced Produced A 36 B 27 7 C 18 14 D 9 21 E 0 28 (a) along the production possibilities frontier. (b) inside the production possibilities frontier. (c) outside the production possibilities frontier. (d) at the vertical intercept of the production possibilities frontier. (e) at the horizontal intercept of the production possibilities frontier. 11. The graph in the figure below illustrates an initial competitive equilibrium in the market for apples at the intersection of DI and S1 (point A). If there is a shortage of apples, how will the equilibrium point change? Price Quantity (a) The equilibrium point will move from A to B. (b) The equilibrium point will move from A to C. (c) The equilibrium point will move from A to E. (d) There will be no change in the equilibrium point. (e) The equilibrium will first move from A to B, then to E. 12. Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontierHours Open Total Revenue (dollars) 50 N 75 95 110 120 125 (d) 5 hours (e) 6 hours 22. Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy? (a) the government. (b) producers. (c) consumers. (d) consumers and producers. (e) the government, consumers, and producers. 23. Refer to the figure below, if the current market price is $15, the market will achieve equilibrium through Price $25.00 20.00 15.00 10.00 200 400 500 600 700 Quantity (a) a price increase, increasing the quantity supplied and decreasing the quan- tity demanded. 11(a) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. (b) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. (c) Both the supply and demand curves have shifted to the left. As a result, there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price. (d) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. (e) Both the supply and demand curves have shifted to the left. As a result, there has been a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity. 18. The below table shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. If the two countries specialize and trade, who should export canoes? One Canoe One Sailboat Guatemala 10 hours 60 hours Honduras 15 hours 75 hours (a) Guatemala. (b) Honduras. (c) Both of them. (d) None of them. 19. Which of the following statements about a circular flow model is false? (a) Producers are buyers in the factor market. (b) Producers are sellers in the product market. (c) Households are buyers in the product market. 9Food products W