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The Diagram Below Represents the Producer Side of the Market

question 23

Essay

The diagram below represents the producer side of the market for skateboards in New York.The current price of skateboards is PA.Each of the events described below will have some impact on the supply of skateboards.For each event, draw a picture to illustrate the effect of the event.Be sure to explain your pictures using pertinent economic terminology ("movement along" or "change in quantity"). The diagram below represents the producer side of the market for skateboards in New York.The current price of skateboards is P<sub>A</sub>.Each of the events described below will have some impact on the supply of skateboards.For each event, draw a picture to illustrate the effect of the event.Be sure to explain your pictures using pertinent economic terminology ( movement along  or  change in quantity ).   (a) A drop in the price of skateboards. (b) An increase in the price of wheels used in the manufacturing of skateboards. (a) A drop in the price of skateboards.
(b) An increase in the price of wheels used in the manufacturing of skateboards.


Definitions:

Predestined

Determined in advance by destiny or divine will, leading to the belief that events are fixed and unchangeable.

Stoics

Followers of Stoicism, an ancient Greek school of philosophy that teaches the development of self-control and fortitude as a means of overcoming destructive emotions.

Death

The cessation of all biological functions that sustain a living organism, marking the end of life.

Divine Plan

A belief in a predetermined course of events controlled or envisioned by a supernatural power.

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