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 ```#16 If there is a shortage of farm labors, we would expect A) a decrease in the demand for substitutes for farm labor b) the wages of farm laborers to decrease c) the price of farm commodities to decrease #17 One result of a drought in the Midwest could be an increase in a) farm machinery prices b) the price of diesel fuel being used in farming c) migrant farm workers wages d) the price of frosted shredded wheat #20 Suppose you make jewelry, If the price of gold falls, we would expect you to a) be willing and able to produce less jewelery than before at each possible price b) we willing and able to produce more jewelry than before at each possible price c) face a greater demand for your jewelery d) face a weaker demand for your jewelry```
 ```Hi k9queen-ga, I have embedded the answers to these questions along with a brief explanation for each: #16 If there is a shortage of farm labors, we would expect A) a decrease in the demand for substitutes for farm labor b) the wages of farm laborers to decrease c) the price of farm commodities to decrease The answer is NONE OF THE ABOVE - a shortage of farm labors would result in an increase in the demand for substitutes, increase in wages of farm laborers, and price of farm commodities to increase (since its now more difficult to produce). #17 One result of a drought in the Midwest could be an increase in a) farm machinery prices b) the price of diesel fuel being used in farming c) migrant farm workers wages d) the price of frosted shredded wheat This question's possible answers seem to be incomplete, so let me fill in the blanks for what would be a potentially correct answer: Farm machinary prices decrease (since a drought indicates a decrease in the amount of usable crops, demand for farm machinary will also decrease). Diesel fuel used for farming as well as migrant farm workers wages will also decrease in price (for the same reason as given above for farm machinary). The price of frosted shredded wheat will increase (since there is a decrease in supply of wheat as a result of the drought). #20 Suppose you make jewelry, If the price of gold falls, we would expect you to a) be willing and able to produce less jewelery than before at each possible price b) we willing and able to produce more jewelry than before at each possible price c) face a greater demand for your jewelery d) face a weaker demand for your jewelry The correct answer here is B - since the cost of gold is lower, the cost of making the same gold jewelry is lower. This will cause an upward "shift" in the supply curve (which incidentally means the same thing as "be willing and able to produce less jewelery than before at each possible price"). Hopefully you understand the logic used to answer these questions - please post a clarification if you have any concerns :) Cheers! answerguru-ga``` Clarification of Answer by answerguru-ga on 17 Sep 2003 11:51 PDT ```Hi k9queen-ga, Researchers are not permitted to communicate via email - I would be happy to help you further. If you have any new questions that you need assistance with you can just post a new question (you can specify "for answerguru-ga") and I will certainly try to help :) answerguru-ga```