1. Supply and demand for balloon rides. Quantity Demanded Price Quantity Supplied 40 $50.00 0 35 $100.00 10 30 $150.00 20 25 $200.00 30 20 $250.00 40 15 $300.00 50 c) Suppose that incomes rise next year and that balloon rides are normal goods. Show how this would affect the graph in part a) and describe the impact on equilibrium price and quantity in words. You don't have enough information to arrive at a particular sized shift, but you do know which curve(s) will move in which direction(s). Here's how to answer questions about shifts: - Always start with a fully illustrated diagram that includes dotted likes to the axes and clearly labeled equilibrium price and quantity. - Add the new shifted curve or curves to your existing graph. - Label the new curve(s) with a new subscript and use arrows to indicate the direction of shift. - Plot new dotted lines to the new equilibrium price and quantity. - Never tell me to look at your graph - always show me that you understand the graph by summarizing key results in words