5. Please reproduce your diagram from the other side of the paper. Decide which curve shifts, and the effect on equilibrium price and quantity if:: a. the price of cattle feed ("Cow Chow") increases b. Americans increasingly turn to a vegan, plant-based diet c. a failure of U.S. grain crops raises the price of breakfast cereals to levels most consumers can't afford d. a law is passed capping the price of milk at $6/quartECON. 1 EXERCISE #2 PRICE/QUART QUANTITY DEMANDED QUANTITY SUPPLIED $5 5 26 4 1o 19 3 13 1s 2 1s 1s 1 22 7 1' Draw vertical and horizontal axes and label them correctly. Plot all points listed under Quantity Demanded. This is a demand curve for dairy [cow's milk). 2. What happens to Lhe demand curve you've plotted if: a. consumers decide they prefer a soy milk to dairy milk 'b. mnsurners' incomsingeq.' ' I i \\ A c. a new diet that prescribes oathil and mm: 3 times a'daybwdeps the nation d. consumei's incomes fall due to widespread unemployment 3. On the same pair of axes. plot the points under Quantity Supplied. Is there an equilibrium price and quantity in rhie market? If so, what are thy? ' 4. what happens to the supply curve If: a. nutritional advances in cattle raising dramatically ncrease milk yields for each cow b. mnsumers' incomes increase - c. dairy farmers are taxed an extra 5.25 per gallon on milk sold