1. (6 points) For each of the following observations, identify which curve will move and which way it will move.Be brief in your description using two words such as "supply left" or "demand right."Describe the curve movement as left or right.
2. (2 points) There is a decrease in the price good Y, a complement of good X.
3. (2 points) There is an increase in income.
4. (2 points) There is an increase in the productivity of firms that produce good X.
5. (6 points) Draw a graph of the initial equilibrium.Then show the change(s) you predict based on your answers in the previous part.One graph, and combine curve movements into a single movement each curve if possible.For example, if two influences indicate the demand curve will move in the same direction, move the demand curve only one time in that direction.Be sure to label all axes and curves clearly.Indicate the first equilibrium and label it as Point 1 and the new equilibrium and label it as Point 2.Next to your graph, summarize the changes you can predict with certainty and indicate if there is anything uncertain.