1. Consider the market for iPods. For each of the events below, identify which of the determinants of demand and supply are affected, and indicate whether demand or supply is increased or decreased. Then, illustrate the effect of the event on the price and quantity of iPods with a supply-demand diagram.
A. A big tax cut increases everyone`s wealth
B. A change in copyright laws raises the price of downloading music dramatically.
C. A Strike by truckers raises the cost of transporting all goods.
D. Best Buy start giving away free CD players to anybody who wants one.