5. Using your understanding of the nonprice determinants of supply and of demand, analyze ea of the following market cases. Draw a graph showing what happens in ea situation, indicate what happens to equilibrium price and quantity, and explain why, following this example: Market for gasoline: A hurricane hits the Gulf of Mexico, destroying many refineries that produce gasoline from crude oil.

The hurricane reduces the number of producers, whi shis the supply curve ba (to the le) from S 1 to S 2 ; price rises from P 1 to P 2 and quantity falls from Q 1 to Q 2 .

a. Market for bananas: New health reports indicate that people can gain important health benefits from eating bananas.

b. Market for shoes: A new tenology for shoe making means that shoes can be made at a lower cost per pair.

c. Market for Internet design services: Several thousand new graduates of design sools enter the market, ready to supply their services.

d. Market for expensive meals: A booming economy raises the incomes of many households.

e. Market for grapes from California: A freeze in Chile, usually a major world provider of fresh fruit, raises the price of Chilean grapes.

f. Market for salsa dance lessons: e only nightclub featuring salsa music triples its entrance fee.
g. Market for boled water: A rumor circulates that the price of boled water is about to triple.
(ink only about the demand side.)

h. Market for Internet design services: Several thousand new graduates of design sools enter the market, ready to supply their services, at the same time that many firms want to create new Web sites.
i. Market for bananas: New health reports indicate that people can gain important health benefits from eating bananas, while at the same time an infestation of insects reduces the banana harvest in several areas.

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Price 17 16 15 14 13 12 11 Quantity supplied 9 7 5 3 1 - Quantity demanded 3 4 5 6 7 8 9 10 Price P2 P1 5 S D Q2 Q1 Quantity of gasoline