1.Fill in the following table stating how the event would affect demand or supply for gold picture frames in Ontario. That is, will the curve shift to the left, to the right, will there be movement along the curve (to the left or to the right) or will there be no impact in the curve.

Event

Impact on Demand (will the demand curve shift to the left, the right, or remain the same)

1

Picture frames become popular as wedding gifts.

2

The price of picture frames decreases.

3

Fewer people print their photographs.

Impact on Supply (will the supply curve shift to the left, the right, or remain the same)

4

The cost of the material to make picture frames increases.

5

Price of picture frames increase.

6

A new technology makes it faster to assemble the frames.

2.Illustrate Scenario #1 above by drawing the impact on the market in a correctly labeled graph. You do not need to invent numbers. Just make sure I know what happens in the market and that the graph is properly labeled. Clearly identify the old equilibrium and the new equilibrium. To work on this you will need to draw the original demand and supply and then draw new demand and supply curves where appropriate