1)Describe law of supply.

2)Distinguish between change in quantity demanded and change in demand (include a few examples of determinants as well). Provide appropriate graphs.

3)Explain the effect of the following on either demand or supply curve for cupcakes (including whether each case involves a movement along or rightward/leftward shift of the respective curve).

a)A decrease in price of flour.

b)An increase in price of cupcakes.

c)A rise in the average household income from $4,000 to $7,000.

d)An improvement in dough mixing technology.

e)A recent report issued that the frequent consumption of cupcakes may increase the risk of diabetes.