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Briefly describe whether each of the following statements describes a change in supply or a changein the quantity supplied. Include a diagram to illustrate your answer.

a. To take advantage of higher prices for umbrellas in winter, Shelter Umbrellas Companydecides to increase output.

b. The success of the Apple iPad-mini leads more firms to begin producing mini tablets

c. In the six months following the devastating earthquake and tsunami in Japan in 2011, motorvehicle production in Japan fell by 20 per cent.

Use the following graph for Yolanda's Frozen Yoghurt Stand to answer the questions that follow.

a. Use the midpoint formula to calculate the price elasticity of demand for D1 between point Aand point C, and the price elasticity of demand for D2 between point A and point B. Which demandcurve is more elastic, D1 or D2? Briefly explain.

b. Suppose Yolanda is initially selling 200 cones per day at a price of $3.00 per cone. If shereduces her price to $2.50 per cone and her demand curve is D1, what will be the change in herrevenue? What will be the change in her revenue if her demand curve is D2?

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