1. Consider the market for large family saloon cars. For each of the events listed here, identify which of the determinants of the demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Then show the effect on the price and quantity of large family saloon cars. a) People decide to have more children. b) A strike by steel workers raises steel prices. c) Engineers develop new automated machinery for the production of cars. d) The price of estate cars rise. e) A stock market crash lowers people's wealth. 2. Fish and chips are complements a) We observe that both equilibrium price of fish and the equilibrium quantity of chips have risen. Who could be responsible for this pattern? (Illustrate graphically) a. a fall in the price of potatoes? b. a fall in the salary of fishers? b) Suppose that the equilibrium price of fish has risen and the equilibrium quantity of chips has fallen. Who could be responsible for this pattern? (Illustrate graphically) a. a rise in the price of potatoes? b. a rise in the salary of fishers? 3. Suppose that the price of tickets to see your local football team play at home is determined by market forces. Currently, the demand and supply schedules are as follow. Price in E Quantity demanded Quantity supplied 10 50000 60000 20 40000 30000 30 30000 30000 40 20000 30000 50 10000 30000 a) Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true? b) What are the equilibrium price and quantity of tickets? c) Your team plans to increase total capacity in its stadium by 5000 seats next season. What admission price should it charge