Suppose that the prices of Beretta M9s and Henry Golden Boys go down. Using adiagram, show clearly what effect this has on the market for .22 ammunition.

The government has decided that the free-market price of cheese is too low. Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram to show the effect of this policy on the price of cheese and the quantity of cheese sold. Is there a shortage or surplus of cheese?

Suppose that there is a decline in the cost of a unit of capital, in the long run. 

a. What will be the substitution effect of this change on use of capital and labor, and why? How would this be shown on an isoquant diagram? 

b. What will be the scale effect of this change on use of capital and labor and why? How would this be shown on an isoquant diagram? 

c. What will be the net or total effect of this decline in the cost of capital on the use of capital and labor?

Suppose that there is a decline in the cost of a unit of capital, in the long run. 

a. What will be the substitution effect of this change on use of capital and labor, and why? How would this be shown on an isoquant diagram? 

b. What will be the scale effect of this change on use of capital and labor and why? How would this be shown on an isoquant diagram? 

c. What will be the net or total effect of this decline in the cost of capital on the use of capital and labor?