Explain what happens to supply, price, and quantity when the following condition occur: a) A new technology is developed to pick peaches b) The government allows more furniture input from China

a.In this case, the supply curve shifts downwards resulting in the increase of quantity supplied.This is because more commodities can be produced with the new technology. Thus, the price of the good decrease.

b. Input is used in the production of a good. Higher input can be used to produce larger amount of commodities.Thus, the supply curve shifts downward resulting in the increase in the quantity supplied and increase in the price.

c. If interest rates are lower to help spur the economy then there will be large flow of capital in the country.This results in the appreciation of the currency.Since, people is higher capital flow in the country, it can be used to produce more commodities and increase supply.Also, increase quantity supplied and decrease price.

d. If the cost of rubber which is used in the manufacturing of tires increases, this means that the inputs used in tires production are cheaper.This means that with the same cost, more inputs can be purchased and more output can be produced.Thus, supply increases, quantity supplied also increases and price decreases.

e. If government imposes a tax in the imports of foreign cars then the domestic demand for the domestic cars increase because the foreign cars become more expensive.This should not have a direct relation to the supply but if domestic producers of cars react to the policy then they will increase the supply of domestic cars increasing the quantity supplied as there is more demand in the market.