1.Because bagels and cream cheese are often eaten together, they are complements.

(a)We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be responsible for this patterna fall in the price of flour or a fall in the price of milk? Illustrate and explain your answer.

(b)Suppose instead that the equilibrium price of cream cheese has risen but the equilibrium quantity of bagels has fallen. What could be responsible for this patterna rise in the price of flour or a rise in the price of milk? Illustrate and explain your answer.

Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes.