a) Assume that there is animprovement in the technologyused for manufacturing ice cream; meanwhile there isincreasedbpreferencefor ice cream in Newcastle in 2020 due to a long hot summer. Using demand and supply analysis, predict what will happen toequilibrium priceandquantity demandedfor this market as a result of these two changes,ceteris paribus.

b) If the supply of housing in Newcastle increases proportionally more than the increase in demand for this housing, thenceteris paribus, will the equilibrium price of houses be lower or higher? Briefly explain your response.