In the next set of problems, you examine scenarios and determine if there is a change in the quantity supplied and quantity demanded. Alternatively, the scenario may describe a shift in supply or a shift in demand. Remember a change in the quantity supplied or the quantity demanded results in movement along the current supply and demand curves. Whereas, a shift in supply or a shift in demand results in a shift of the whole curve to the left or right of the current curve. The tables below list questions to help you identify if there was a shift in supply or a shift in demand. Shift in the supply curve: 1. Is there a change in the cost of production? Is there an advancement In technology? Is there a change In the price of other goods? 5. Is there a change in taxes? Shift in the demand curve: Is there a change In income? Is there a change In the price of a related good or service? 3. Is there a change In preferences? Is there a change In future price expectations? Is there a change In population? In each problem, you must explain the scenario's effect on the market. If the quantity supplied or the quantity demanded changes, state how (increase or decrease). If instead, the scenario meets one of the criteria above, indicating there is a shift. If one of the curves shifts, state why and the direction it shifts (left or right). You should then state the effect on price (increase or decrease). Example problem: The rst lady declares war on sweets in America. You make doughnuts