Variables typically included in a multivariate demand function (other than the price and quantity of the item the demand function represents) are consumer tastes and preferences, the number of buyers, spendable (disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures, weather, and expectations.Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis, the other variables are termed demand shifters.Please answer the following questions about the affect changes in other variables might have on the demand for the item.These changes will either cause demand to increase (shift right) or decrease (shift left).Use either word as applicable, for the short answer.

1. If the future prices of the good being considered are expected to decrease, then present demand for the good being considered will likely:

2.If the demand for a good decreases then the demand for a complementary good will likely ___________ .

3.The Atkins diet (promoting the virtues of a low carbohydrate food intake) became very popular in the U.S.A.This worried the pasta industry because it thought that pasta (a high-carb food) demand would likely:

4.Lattes are expensive coffee drinks.If people's spendable income increases (perhaps wages have increased due to tight labor markets), the demand for Lattes, a normal good, is likely to _______________.

5.CNN Today (8-16-04) noted that orange juice is a high-carb drink.The diet rage at the time was the Atkins (low-carb) diet.Therefore, the demand for conventional orange juice concentrate was likely to decrease relative to its supply.Thus orange growers were likely to see the price of their oranges used for making orange concentrate _________________ .

Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, expectations, the number of suppliers, techniques of production, taxes and subsidies, prices of input resources, and weather.Please answer the following questions about the affect changes in other variables might have on the supply of the item.These changes will either cause supply to increase (shift right) or decrease (shift left).Use either word as applicable, for the short answer.

1. The affect on the supply of Ethanol of a government subsidy to its growers is to:

1. If there is a decrease in the number of producers of the item being considered, then the supply of it is likely to:

1. Politicians voted to end the crop subsidy for growing broccoli.Thus domestic broccoli growers are likely to ______________their supply of broccoli.

1. There has been a sharp increase in the demand for a product, whose production uses an input resource critical to the production of a product you produce.You thus expect that the price of this critical resource will increase.Because the competition for your product is intense, you will not be able to raise its price to offset increasing production costs.You also cannot request a larger budget to offset the increasing production costs.Therefore, you expect that you will need to _________________the production (supply) of it.

1. CNN Today (8-16-04) mentioned that hurricane Charlie destroyed a large proportion of the just ripening Florida orange crop.You therefore expect the supply of newly ripened oranges will ________________ .