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Economics

I) Complete the following phrase: (4 points)

The law of demand states that as the price of a good (increases/decreases) __________, the quantity demandedof the good (increases/decreases) __________. As the price (increases/decreases) __________, the quantity demanded of that good (increases/decreases) __________.

II) In yourown words, explain the law of supply. (4 points)______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

III) Create a table imagining the supplyschedule for a product you consume. Using the figures form that table, create a supply curve. (5 points)

IV) Explain the difference between a movement along the supply curveand a shift in the supply curve. (4 points)_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

V) Using an appropriate diagram and your knowledge of the determinants of supply, explain why the supply of rice might decrease. (6 points)...