1. Draw a correctly labeled market graph that illustrates an effective legal limit (floor) on prices. Identify the quantity demanded, the quantity supplied, and the size of the resulting surplus or shortage.
2. Draw a correctly labeled market graph that illustrates an increase in demand and a decrease in supply. Explain what the change in equilibrium price and quantity will be.
3. Draw a correctly labeled graph for the cereal market. Show the effect of an increase in the price of both milk and whole grain. Explain what the change in equilibrium price and quantity will be.
4. Draw a correctly labeled graph of the market for taxicab rides. On the graph, draw and label a vertical line showing an effective quota. Label the demand price, the supply price, and the quota rent.