QUESTION 20 Suppose the market for smartphones is perfectly competitive. Please use the supply/demand model to analyze the following event on the equilibrium price (P*) and the equilibrium quantity (Q*). Event: The price of data plans for cell phones falls drastically and the COVID pandemic forces several smartphone factories to shut down production to ensure worker safety. 1. Which curve or curves are affected by this event? | (supply, demand, both, or neither) 2. As a result of this event, demand (shifts left, shifts right, does not shift). 3. As a result of this event, supply (shifts left, shifts right, does not shift). 4. Compared to the initial equilibrium, the equilibrium price (increases, decreases, does not change, change is unkown) 5. Compared to the initial equilibrium, the equilibrium quantity (increases, decreases, does not change, change is unkown) QUESTION 21 What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you? O a. Price will fall, and the effect on quantity is ambiguous. O b. Price will rise, and the effect on quantity is ambiguous. O c. Quantity will rise, and the effect on price is ambiguous. O d. Quantity will fall, and the effect on price is ambiguous. QUESTION 22 Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. Tyrice guantit Refer to Figure 4-20. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from O a. y to x. O b. SB to SA. O c. x to y. O d. SA to SB