Use demand-supply analysis – with appropriately drawn graphs – to briefly explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following:
a. In the past, the success of Tiger Woods has encouraged many your people to become interested in learning golf. What has been the effect of this on the equilibrium price and quantity for golf clubs?
b. Suppose the price of pencils increase and at the same time, the price of ink used in the construction of ballpoint pens decreases. What is the effect on the equilibrium price and quantity of ball point pens?
c. The government decides to restrict the amount of beer sold annually to 1 million bottles. What is the effect on the equilibrium price and quantity of beer?