Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his "Blue Period." Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the United States.a. Draw a supply curve for Picasso Blue Period works. Why is this supply curve different from ones you have seen?b. Given the supply curve from part a, the price of a Picasso Blue Period work will be entirely dependent on what factor(s)? Draw a diagram showing how the equilibrium price of such a work is determined.c. Suppose rich art collectors decide that it is essential to acquire Picasso Blue Period art for their collections. Show the impact of this on the market for these paintings.

Key Concepts: Supply Curve, Equilibrium Price, Market Impact Explanation: The given question is about the market for paintings from Picasso's Blue Period. Through the question, we are required to draw a supply curve for these paintings and explain its uniqueness. Next, we need to identify the factors that determine the price of these paintings and illustrate how the equilibrium price is determined. Finally, we need to show the impact of rich art collectors on the market for these paintings. Step by Step Solution: Step 1. We need to draw a supply curve for Picasso's Blue Period works. The supply curve shows the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell. For this, we need to consider the total number of Picasso's Blue Period works, which is given as 1,000. We also know that all these works are currently on display in museums and private galleries throughout Europe and the United States. This implies that the supply of these works is fixed at 1,000, regardless of the price. Hence, the supply curve is a vertical line parallel to the quantity axis, as shown below: [image of a vertical line parallel to the quantity axis; labeled as 'Supply Curve for Picasso Blue Period Works'] Step 2. The supply curve for Picasso's Blue Period works is different from other supply curves because it is a vertical line, whereas most supply curves are upward-sloping. This is because the supply of these works is fixed and is not influenced by the price. As a result, any change in the demand for these works will only affect the price and not the quantity supplied. In the case of upward-sloping supply curves, an increase in the price increases the quantity supplied. Step 3. The price of a Picasso Blue Period work will be entirely dependent on the demand for these works. If the demand for these works is high, then the price will be high, and if the demand is low, then the price will be low. Therefore, the demand curve determines the price, and the equilibrium price is where the demand curve intersects the fixed supply curve, as shown below: [image of a demand curve intersecting a vertical line; labeled as 'Equilibrium Price for Picasso Blue Period Works'] Step 4. Suppose rich art collectors decide that it is essential to acquire Picasso Blue Period art for their collections. This will increase the demand for these paintings. As a result, the demand curve will shift to the right, as shown below: [image of a demand curve shifting to the right; labeled as 'Market Impact of Rich Art Collectors on Picasso Blue Period Works'] Since the supply of these works is fixed, the equilibrium price will increase, and the quantity sold will remain the same. Final Answer: The supply curve for Picasso's Blue Period works is a vertical line parallel to the quantity axis because the supply of these works is fixed at 1,000, regardless of the price. This supply curve is different from other supply curves as it is not upward sloping. The price of a Picasso Blue Period work is entirely dependent on the demand for these works. The equilibrium price is where the demand curve intersects the fixed supply curve. If rich art collectors decide to acquire Picasso Blue Period art for their collections, then it will increase the demand for these paintings. This will shift the demand curve to the right, and the equilibrium price will increase. The quantity sold will remain the same because the supply of these works is fixed.