1. For each of the following markets, indicate whether the stated change causes a shift in the supply curve, a shift in the demand curve, or a movement along the supply or demand curve (it helps if you sketch the curves out for yourself). a. The housing market: Consumers' incomes fall. b. The tea market: The price of sugar goes down. c. The coffee market: A freeze in Brazil severely damages the coffee crop. d. The fast-food market: The number of fast-food restaurants in an area decreases. e. The peanut market in the U.S. Southeast: A drought lowers supply. 2. Use the supply and demand model to explain what happens to equilibrium price and quantity for frozen yogurt in the following cases. Assume that nothing changes except what is specifically stated. a. The number of firms producing frozen yogurt expands significantly. b. It is widely publicized in the press that frozen yogurt is not more healthy for you than ice cream. c. It is widely publicized in the press that people who eat a cup of frozen yogurt a day live to be much happier in their retirement years. d. The price of milk used to produce frozen yogurt suddenly increases. e. Frozen yogurt suddenly becomes popular because a movie idol promotes it in television commercials. 3. Suppose a decrease in consumers' incomes causes a decrease in the demand for chicken and an increase in the demand for potatoes. a. Which good is inferior and which is normal? b. How will the equilibrium price and quantity change for each good? (Go ahead and sketch these out to help you get the answers. If you can find a way to show them in your HW all the better) 4. Give examples of two substitute goods and two complementary goods. In each case explain why the goods are substitutes or complements