Demand and Supply For the following exercise you will start by drawing the initial demand and/or supply in the market. In the answer to your question you will graph the corresponding shifts in the supply and/or demand curves for each good. 1) Smart phones become very popular in Argentina. At the same time the government makes a regulation forcing all smart phones to be produced in a small town at the Southern tip of the country which forces companies to pay higher salaries to attract workers. a. What happens to the demand for smart phones? Will the change in tastes cause a change along the demand curve or a shift in the demand curve? Illustrate. b. What happens to the supply of smart phones? Will the change in input prices cause a change along the supply curve or a shift in the supply curve? Illustrate