C. Manny owns a commercial walnut grove, and he is unable to use Jack’s new tool because it cannot pick
walnuts.
(i) What will happen to the price of walnuts in the long run?
(ii)What will happen to the quantity of walnuts produced in the long run?
D. Using the following chart, answer these questions about the effects of Jack’s new tool on the labor market.
(i) What effects will Jack’s new tool have on the labor market for walnuts?
(ii)Would it be profitable to replant new walnut trees, or would it make more economic sense to replace the
old walnut trees with pistachio trees and take advantage of the new pistachio technology?Number of workersWageDSPart IV: AP Macroeconomics & Microeconomics Tests