answer economic questions below 1

1.      State the effect of the following events on supply, demand, equilibrium price and equilibrium quantity in the market given. Use a small, neatly labeled graph to support your answer.

 

a.    Beetle infestation decimates tobacco crop. Market: cigars.

      S          ______

      D         ______

      P          ______

      Q         ______

b.   The cost of pesticides increases. Market: soy beans.

S          ______

            D         ______

            P          ______

            Q         ______

c.    Store-brand soup prices are cut. Market: Campbell’s soup.

            S          ______

            D         ______

            P          ______

            Q         ______

d.   Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Market: Papayas.

S          ______

            D         ______

            P          ______

            Q         ______

e.    Hurricanes in the Gulf coast cause gasoline supply disruptions while the summer travel season ends. Market: gasoline.

S          ______

            D         ______

            P          ______

            Q         ______

f.     Digital image albums become the rage among households while improved technology reduces the cost of producing digital cameras. Market: digital cameras.

S          ______

            D         ______

            P          ______

            Q         ______