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What does a supply curve illustrate? Other than its own price, what are the determinants of the supply of a commodity. What would make a supply curve shift to the right?
Imagine that the market for orange juice is in equilibrium at a price of $8 per gallon. Provide two demand-related and two supply-related reasons why the equilibrium price could fall to $7.00 per gallon.
What will happen to the market for orange juice if both producers and consumers believe that prices will rise in the near future? Explain your answer.
What will happen to the market for oranges if the government offers price supports to citrus producers? Who will gain and who will lose? Provide examples and explain your answer.
Why is it unfair or meaningless to criticize a theory as “unrealistic?” Provide examples and explain your answer.
