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In a tomato market, 5 million kg are supplied annually at a price of $ 1 per kg , 7 million kg at a

In a tomato market, 5 million kg are supplied annually at a price of $1 per kg, 7 million kg at a price of $2, and 9

million kg at a price of $3.

a. Draw a graph showing this market supply curve, S0. Plot three points to draw this curve.

b. What will happen to the supply of tomatoes if

i. wages paid to farm workers rise;

ii. there is a drop in the price of corn, which can be cultivated instead of tomatoes;

iii. there is a sudden early autumn frost before the tomatoes are harvested;

iv. a new mechanized tomato-picker is introduced that raises efficiency;

v. producers anticipate that the price of tomatoes will soon fall.

c. If the quantity supplied of tomatoes doubles at every price, what will be the effect on the market supply

curve? Draw this new market curve, S1, on your graph. Plot three points to draw this curve.

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