Pce In your own words. explain the law of supply. Explain the difference between a movement along the supply curve and a shift in the entire supply curve. Use the following gure to describe the effects for changes in the the supply for Farmland. assume all other changes are held constant. For each question indicate if the change reects a movement along the supply curve or if it is a shift in the supply curve. Supply for Farmland Quantity Starting at point a. if the price of farmland increases, what point on the gure would best illustrate this change? Starting at point A, above average rain E causes significant ooding on farm land in the m what point on the gure would best illustrate this change? Starting at point Pi. given technology improvements that increase crop yields, what point on the figure would best illustrate this change? The following figure describes the market supply curve for American wheat. Draw a representation illustrating the effect from an increase in the number of wheat farms in the 1.1.5. Use the shape function under the insert tab to draw this effect on the figure. Supply for Wheat Price Quantity 5. Use the information in the following table to calculate the elasticity of supply for wheat. Use the arc price elasticity formula to make the calculation. Characterize the elasticity of supply by identifying if wheat is elastic or inelastic. Period Price per ton |Quantity (millions of tons) 174 700 21 1 850 . Calculate the cross-price elasticity of supply for corn and soybeans given the information in the following table. Interpret the value by identifying if the goods are substitutes or complements in production. Period Price of Corn(per bushel) Quantity of Beans (billions of bushels) 3.25 4.5