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 ______