1.Consider the market for iPods. For each of the events below, identify which of the determinants of demand and supply are affected, and indicate whether demand or supply is increased or decreased. Then, illustrate the effect of the event on the price and quantity of iPods with a supply-demand diagram.

when a big tax cut increases everyone's wealth.________

when a change in copyright laws raises the price of downloading music dramatically.____

when a strike by truckers raises the cost of transporting all goods.______

when Best Buy stores start giving away free MP3 players to anybody who wants one._____

A.Demand will decrease.

B.Demand will increase.

C.Supply will decrease.

D.Supply will increase.