(20)1. a. List factors that can cause an increase in supply. b. How do increase in income affect demand?Draw a graph. (30) 2. a. When the price of coffee increases 5% , quantity demanded decreases 10% Calculate The pri elasticity of demand for coffee and describe as elastic/inelastic/unit. What happens to total revenue from coff sales? b. When the price of fresh fish increases 10% quantity demanded decreases 5% . Calculate T price elasticity of demand for fresh fish and describe as elastic/inelastic/unit. What happens to total rever from fresh fish? C. When the price of cheddar cheese increases 15% quantity demanded decreases 15% Calcul The price elasticity of demand for cheddar cheese and describe as elastic/inelastic/unit. What happens to t revenue from cheddar cheese? (30) 3. a. The Sweet Success Bakery sells 800 cakes at a price of 20 per cake. Its total economic costs producing 800 cakes are 4,800 Calculate The Sweet Success Bakery's economic profit. b. The Doğanlar A., a landscaping company, has total costs of 4 ,000 TL and total variable cost 1,000 TL. Calculate the Doğanlar's total fixed costs.

1. a. Factors that can cause an increase in supply include:<br />- Technological advancements<br />- Decrease in production costs<br />- Increase in the number of producers<br />- Government policies favoring production<br />- Availability of raw materials<br /><br />b. An increase in income generally leads to an increase in demand. This is because consumers have more disposable income to spend on goods and services. In a graph, this would be represented by an upward shift in the demand curve.<br /><br />2. a. The price elasticity of demand for coffee is -2 (elastic). This means that for every 1% increase in price, the quantity demanded decreases by 2%. Since the demand is elastic, an increase in price will lead to a decrease in total revenue from coffee sales.<br /><br />b. The price elasticity of demand for fresh fish is -0.5 (inelastic). This means that for every 1% increase in price, the quantity demanded decreases by 0.5%. Since the demand is inelastic, an increase in price will lead to an increase in total revenue from fresh fish.<br /><br />c. The price elasticity of demand for cheddar cheese is -1 (unitary). This means that for every 1% increase in price, the quantity demanded decreases by 1%. Since the demand is unitary, a change in price will not affect total revenue from cheddar cheese.<br /><br />3. a. The Sweet Success Bakery's economic profit can be calculated as follows:<br />Economic Profit = Total Revenue - Total Economic Costs<br />Total Revenue = Price per Cake * Number of Cakes Sold<br />Total Revenue = $20 * 800 = $16,000<br />Economic Profit = $16,000 - $4,800 = $11,200<br /><br />b. The Doğanlar A. landscaping company's total fixed costs can be calculated as follows:<br />Total Fixed Costs = Total Costs - Total Variable Costs<br />Total Fixed Costs = $4,000 - $1,000 = $3,000