Suppose that the demand and supply for maple syrup are given by the following equations:

P = 53.25 - 1.25Q^d Demand Curve

P = 12.75 + 0.25Q^S Supply Curve

In each case below, compute the new equilibrium price and quantity exchanged. Has there been an increase/decrease in demand or supply? An increase/decrease in the quantity supplied or demanded? Show in a diagram the initial and new equilibrium locations.

a. Improved weather conditions shift the supply curve to P = 5.25 + 0.25Q^S.

b. Increased use of corn to make gasoline additives causes the price of corn syrup (a substitute for maple syrup) to increase, and as a result, the demand curve shifts to P = 60 - 1.25Q^d.

c. A new labour contract results in a significant increase in the wages of workers in the maple syrup industry, causing the supply curve to shift to P = 15.45 + 0.25Q^S.

d. The income of consumers rises, which shifts the demand curve to P = 55.50 - 1.25Q^d; and at the same time an improvement in technology shifts the supply curve to P = 7.50 + 0.25Q^S.