1.Consider the market for coffee. For each of the events fully draw and label a graph identifying whether demand or supply is affected, which way it shifts, and the impact on equilibrium price and quantity (P, Q) a. A blight on coffee plants kills off much of the Brazilian crop. b. The price of tea declines. c. Coffee workers organize themselves into a union and gain higher wages. d. Coffee is shown to cause cancer in laboratory rats. e. Sellers of coffee expect prices to rise rapidly in the near future

2. Based on information you have, you believe the supply and demand curves for an individual market are as follows: Q = 1000-10P Q = 10P-400

a. Graph these curves, show the intercepts of both the supply and demand curves with the axes (in quadrant 1) b. What are equilibrium price and quantity? Label these values on the graph. c. What are the numeric values of consumer surplus, producer surplus, and total surplus? d. What is the quantity demanded and quantity supplied if market price is $85? What would we expect to happen to prices over time? e. What is the quantity demanded and quantity supplied if market price is $50? What would we expect to happen to prices over time? f. Now envision that the demand curve is now equal to Q=1500-10P (complete parts a through e before doing this). Plot this new curve on the same graph as part b, showing the new equilibrium price and quantity. g. Name three causes that would cause the outward shift in demand seen in part f (as described in a principles text, or in class)