Quantity is the x-axis and price is the y-axis.
The points for the supply line are (0, 4) (2,6) (4,8) (6,10) (8,12) (10,14) (12,16) (14,18) (16,20) (18,22) (20,24)
The points for the demand line are (0,24) (2,22) (4,20) (6,18) (8,16) (10,14) (12,12) (14,10) (16,8) (18,6) (20,4) (22,2) (24,0)

Suppose an increase in the cost of raw materials decreases the supply of basketballs by 8 units at every possible price.  What is the new equilibrium price of basketballs?

To find the new equilibrium price after a decrease in the supply of basketballs by 8 units at every possible price, we need to adjust the supply line and find where the new supply line intersects with the demand line.

### Step 1: Shift the Supply Curve
The original supply points are:

\[
(0,4), (2,6), (4,8), (6,10), (8,12), (10,14), (12,16), (14,18), (16,20), (18,22), (20,24)
\]

Since the supply decreases by 8 units at every price, we subtract 8 units from the \( x \)-coordinate of each supply point (since the quantity of supply is along the \( x \)-axis). This gives the new supply points:

\[
(-8, 4), (-6, 6), (-4, 8), (-2, 10), (0, 12), (2, 14), (4, 16), (6, 18), (8, 20), (10, 22), (12, 24)
\]

### Step 2: Identify the Demand Curve
The demand curve points remain the same:

\[
(0, 24), (2, 22), (4, 20), (6, 18), (8, 16), (10, 14), (12, 12), (14, 10), (16, 8), (18, 6), (20, 4), (22, 2), (24, 0)
\]

### Step 3: Find the New Equilibrium Point
The equilibrium occurs where the quantity supplied equals the quantity demanded, i.e., where the new supply line intersects with the demand line.

From the new supply points, the first point where the new supply equals demand is at:

\[
(10, 22)
\]

At this point, the quantity is 10 units, and the price is 22. Hence, the new equilibrium price is **22** units.

### Conclusion:
After the decrease in supply, the new equilibrium price of basketballs is **22**.

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Would you like more details on any part of the solution?

Here are 5 related questions for further exploration:
1. What is the original equilibrium price before the decrease in supply?
2. How would a further increase in raw material costs affect the equilibrium?
3. What is the slope of the supply and demand curves?
4. How can you determine the change in equilibrium quantity and price algebraically?
5. How does a shift in demand compare to a shift in supply in terms of equilibrium changes?

**Tip**: When graphing supply and demand curves, changes in the external factors (like raw material costs) shift the entire curve horizontally or vertically, depending on whether the factor affects supply or demand.

Quantity is the x-axis and price is the y-axis. The points for the supply line are (0, 4) (2,6) (4,8) (6,10) (8,12) (10,14) (12,16) (14,18) (16,20) (18,22) (20,24). The points for the demand line are (0,24) (2,22) (4,20) (6,18) (8,16) (10,14) (12,12) (14,10) (16,8) (18,6) (20,4) (22,2) (24,0). Suppose an increase in the cost of raw materials decreases the supply of basketballs by 8 units at every possible price. What is the new equilibrium price of basketballs?

Determine the new equilibrium price when the supply of basketballs decreases by 8 units at every price level. Analyze the supply and demand curves, understand how shifts in supply affect equilibrium, and calculate the new price point. Ideal for advanced high school economics and math students.

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