3. If the current price of coffee is $3 per cup, and quantity traded is 100 (million cups), what happens to price and quantity of coffee if the price of tea goes down? Draw a generic supply and demand curve to illustrate the effects of (a) a fall in the price of tea; (b) a fall in the wages of Starbucks employees; (c) a coffee plant blight in Brazil which cuts the coffee crop by 1/3. 4. Why might Brazilian coffee growers think that the blight is not such a bad thing? What has to be true about demand in order for them to think it? 5. In 1981, the US set a limit on Japanese car imports of about 1.7 million cars per year. Economists estimated that this raised the price of new Japanese cars by about $2600. Draw a diagram that shows how this price rise came about, and that this entailed a loss in consumer surplus to US households. 6. In the same study, it was estimated that the price of USmade cars rose by $400. Show, using words and a diagram, why this happened. 9. The US imposes a $4.10 tax on every airline flight. This is added to the ticket price, and is paid by the passengers. Demonstrate the possible range of price increases that this tax would create. Under what circumstances would the minimum and maximum increases occur? 10. Taxes on concert tickets are very common. Why do you think this is the case? Think about the supply of concert seats