1. Starting from an initial position of market equilibrium for a good, and using appropriate demand and supply diagrams, explain clearly what happens to the market equilibrium price and quantity in each of the following situations:

(a) A successful advertising campaign for the good. (3 marks)

(b) The introduction of cost reducing technology for producing the good. (3 marks)

(c) The government intervenes in the market and sets a Maximum Price. (4 marks)

(Total 10 marks)