At the start of 2010 the UK was hit by extremely cold weather including snow and ice. As a result, there

was a major increase in demand for salt to put on the roads to make them safer. However, the supply of

salt in the UK comes mainly from three salt mines; one in Cheshire, one in Cleveland, and one in County

Antrim. The shortage was so great that at one point the government ordered councils to use less grit on

the roads and stopped gritting the hard shoulder of the motorways. Problems in the past meant councils

had been instructed to hold a few days' worth of stock of salt but this was not enough to make the roads

safe

1) What is the shape of short run supply curve of Salt in this particular case? Either the supply curve is vertical or positive slop?

2)What will be the impact of an increase in Price the price of salt on the revenue of supplier of Salt?

3) In case of large jump in the Price of Salt, what will be the impact on quantity demanded of Salt? Either Quantity demanded will decline

massively or not?

4)In this particular scenario, what will be the impact on Price of salt?