2. Jeff loves to dip his cookies into milk. The price of pretzels fall, how will that impact his demand for milk? What will happen in both the pretzel and mustard markets?

3. There is a report that U.S. real monthly income has been falling over the past year. What effect will this have on demand for Ford SUVs?

4. Ceteris paribus, what if there is an expectation on the part of consumers that prices of Explorers will fall next year. What effect will this have on the market for Ford Explorers today? Use words and a graph to illustrate the Ford Explorer market.

5. During the early era of automobile manufacturing, the first auto companies were formerly producers of bicycles and carriages. In other words, some of the same technology used in bicycle and carriage manufacturing was also employed in the early auto industry. Suppose, ceteris paribus, there is an increase in the price of carriages and bicycles. How would this affect the automobile market from the perspective of producers? Illustrate your answer in words and a graph of the automobile market.