4. Explain and illustrate graphically by drawing the appropriate shift in the supply curve for each of the following products or services in terms of the situation described. Use the graphs that are provided for you, and which can be found at the bottom of the list of the situations described. Use graph (a) for situation (a), graph (b) for situation (b), etc. a. As the popularity of bottled water continues to rise, more companies enter the bottled water industry. What happens to the supply curve for bottled water? b. The cost of jet fuel increases, forcing the airlines to cancel some routes. What is the effect of this increase in the cost of production on the number of airline flights being offered to consumers? c. How does a new cost-reducing technological improvement in the production of fuel for automobiles made from corn affect the market supply of this type of fuel? d. The federal government puts a subsidy on corn that can be processed into fuel. How does that subsidy affect the market supply of corn? e. The federal government offers a large tax credit to firms who produce wind-powered turbines that can be used to generate electricity. What is the effect on the supply of wind-powered turbines? f. Coffee producers in Brazil anticipate that they can get higher prices for coffee in the future. How may that expectation affect the current production of coffee beans. (a) ( b ) (c) Bottled Water Airline flights Corn-based fuel (d) (e) (f ) Corn Wind-powered turbines Coffee 5. Suppose that the total market demand for wheat and the total market supply of wheat per month in the Kansas City grain markets are as follows: Thousands Price Thousands Surplus (+) of Bushels per of Bushels or Shortage (-) demanded Bushel Supplied and Amount 1000 $6.50 700 950 $7.00 750 900 $7.50 800 850 $8.00 850 800 $8.50 900 750 $9.00 950 a. What will be the market (equilibrium) price? What is the equilibrium quantity? b. Fill in the amount of the surplus or shortage and indicate whether there is a surplus (+) or a shortage (-)