Name B CDE 3. NATIONWIDE AUTO STRIKE BEGAN AT MIDNIGHT Supply Curve 4. QUOTAS ELIMINATED: FOREIGN CAR Price (P) IMPORTS RISE Supply curve 5. STEEL PRICES RISE 10 PERCENT Supply Curve 6. LARGE AUTO PRODUCER GOES BANK- RUPT, CLOSES OPERATION Supply Curve Supply of foreign and domestically produced cars in the U.S. (Q) 7. BUYERS REJECT NEW CAR MODELS: Part 1 SELLERS LOWER PRICES Supply Curve Read the following eight newspaper headlines. In each case, decide if the event will cause any 8. SHORTAGES ABOUND IN ELECTRONICS change in the supply of cars. If so, determine if it is an increase or a decrease, and write the correct CONSUMERS CAN'T BUY ENOUGH NEW answer. Begin at curve C. If you think headline 1 GAMES AND GO GETS means there will be a decrease in supply, write Supply Curve decrease in the first blank and "B" in the sec- ond blank, move to curve B to do headline 2. Or. Part II if you think headline 1 means supply will Put each change in supply from Part I into one increase, write "increase" and "D" in the blanks of the following categories, based on the reason for headline 1; move to curve D to do headline 2. for the change. Write the number of the head- Move only one curve at a time. Do not skip two line(s) next to the appropriate reason for the curves, say from A to C. even if you think the change in supply. Some categories may have more headline means there will be a large change in than one headline number, and any event that did supply. Do not go beyond the five curves. If you not change supply should not be listed with any of are at A and the next headline implies a decrease the determinants. in supply, you goofed somewhere. There is one headline which implies that the supply of cars A change in the cost of factors of production does not change. A change in technology 1. AUTO WORKERS AGREE TO WAGE AND A change in the number of sellers in the market FRINGE CUTS Supply Curve A change in profit opportunities 2. NEW ROBOT TECHNOLOGY INCREASES producing other products EFFICIENCY IN DETROIT FACTORIES Supply Curve