1. Suppose you are planning to conduct a study of the running shoe market. List the factors that you believe would cause changes in the demand for running shoes. In each case, note whether the relationship would be positive (direct) or negative (inverse). Also, list the factors that you believe would affect the supply, again noting the nature of the relationship.

2. In each case below, identify the effect on the demand curve for steak (a normal good).

a. An increase in the price of lamb

b. A decrease in the population

c. An increase in consumer income

d. A decrease in the price of steak sauce

e. An increase in advertising by chicken producers

3. In each case below, identify the effect on the supply curve for coal.

a. The development of a new, lower-cost mining technique

b. An increase in wages paid to coal miners

c. The imposition of a $2 per ton tax on coal

d. A government ban on all imports of coal

e. A new government regulation requiring air purifiers in all work areas

4. Demand for park visits isEMBED Equation.DSMT4If park visits are free, how many visitors will attend? How will your answer change if the park adds a $20.00 admission fee? Show using a graph.

5. The estimated supply function for avocados isQ = 58 +15p 20pf,wherepfis fertilizer price. Determine how much the supply curve for avocados shifts if the fertilizer price rises from $0.40 to $1.50 per lb. illustrate this shift in a diagram.