Surveys indicate that Americans are becoming more and more dependent on over the counter medications such as Advil. For each of the following two scenarios, illustrate and describe the effect on both the demand and supply curves and on equilibrium price and quantity, answer should describe in words and illustrate in graphs.
(a) Rise in the price of an important ingredient used as a raw material in making Advil.
(b) A recent publication in Harvard Medical Journal has suggested that persistent use of such medicine may substantially increase the risk of Melanoma.
What's "market clearing price". Why is the market clearing price often described as an equilibrium situation? Use graphs to support the answer.