A. What is the primary incentive of each producer to make widgets? b. What would happen to the supply of widgets if there was a technological advance that lowered the cost to
make widgets? Explain.

c. Make a supply schedule for the whole market of widgets, based on these three suppliers.

d. Draw the market supply curve from the schedule in part (c). Label the curve S1.

e. On your graph from part (d), illustrate the effect of the technology advance on the supply of widgets.
Label the new curve Sz.

f. Assuming the market situation from part (b), and that producers will not charge less than $1, would the
quantity supplied of widgets be more or less than 11 widgets? Explain.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?