Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Steel: the government introduces environmental restrictions on the dumping of wastes from producing steel.

Refer to the given data. On the basis of the production possibilities data shown:

Answer the question on the basis of the following production possibilities data for Landia and Scandia:

A.  Landia has a comparative advantage in chips while Scandia has a comparative advantage
in fish.
B.  Landia has a comparative advantage in fish while Scandia has a comparative advantage in
chips.
C.  both Landia and Scandia have a comparative advantage in fish.
D.  both Landia and Scandia have a comparative advantage in chips.

For the aggregate supply curve, the profit effect

A. Provides an incentive for producers to decrease output when prices rise. B. Is temporary in the short run, while in the long run it is canceled out because the cost effect dominates. C. Dominates in the long run and causes the curve to be upward-sloping. D. Along with the cost effect causes the curve to be downward-sloping in the long run.