3. (8 points total) Consider how each of the events below would (separately) affect the market for Samsung smartphones. For each event, (1) indicate which curve (Supply or Demand) will shift & in which direction (left or right), (2) explain, in one sentence, the reasoning behind your prediction, (3) show the curve shift graphically, and (4) indicate the impact of this change on the equilibrium price & the equilibrium quantity a) Event 1: The price of owning an Apple iPhone increases. (Note: Assume that Samsung phones and Apple iPhones are substitute goods). (1) Which Samsung phone market curve shifts? Which direction? (2) Explanation of your reasoning. (3) On your own piece of paper, graph the effect of this change on the market for Samsung phones (no need to draw this electronically) Price per Market for Samsung Phones Samsung phone Supply Demand # of Samsung Qo Phones (4) As a result of this change, the equilibrium price will (increase/decrease) and the new equilibrium quantity will (increase/decrease) b) Event 2: The government adds an additional tax of $50 on Samsung for each phone they produce. (1) Which Samsung phone market curve shifts? Which direction? (2) Explanation of your reasoning. (3) On your own piece of paper, graph the effect of this change on the market for Samsung phones (no need to draw this electronically). Price per Market for Samsung Phones Samsung phone Supply Po Demand # of Samsung Qo Phones and (4) As a result of this change, the equilibrium price will (increase/decrease) the new equilibrium quantity will (increase/ decrease) (NEXT PAGE)