Question

based on the scenario, indicated whether supply would increase or decrease.
nintendo develops new technology that allows them to produce more consoles each year.
the us government changes federal law to require clean environments where food is manufactured.
the us government creates a living wage requiring states to increase their minimum wage based on the cost of living.
in recent years, there has been an increase in the number of firms offering cell phone service.
the us government places a 25% tariff on all items imported from china.
number of sellers change in cost of input or productive resources technology government regulations

Explanation:

• Scenario 1: New technology that allows more consoles to be produced each year will increase supply. Technology is a determinant of supply. When there is an improvement in technology, producers can produce more output at each price level.
• Scenario 2: Requiring clean environments where food is manufactured (a government regulation) will likely increase production costs (e.g., installing new cleaning equipment, training employees). Higher costs of production will decrease supply.
• Scenario 3: Increasing the minimum - wage (a change in the cost of input or productive resources, as labor is an input) will increase production costs. Higher costs lead to a decrease in supply.
• Scenario 4: An increase in the number of firms offering cell - phone service (an increase in the number of sellers) will increase the supply of cell - phone services. More sellers in the market mean more output is available at each price level.
• Scenario 5: A 25% tariff (a government regulation) on imported items from China will increase the cost of importing those items. For domestic firms that rely on imported inputs or compete with imported goods, this can increase costs or make domestic production relatively less profitable (if it's a tariff on competing imports). In either case, supply is likely to decrease.

Answer:

1. Increase
2. Decrease
3. Decrease
4. Increase
5. Decrease