A Bayliner is a type of boat. Suppose that the price of the Bayliner engine (an input in producing a Bayliner boat) increases. Suppose further that the price of a Sea Ray (ano]her kind of boat) decreases. Suppose a Sea Ray is a substitute for a Bayliner.

(6 points) Show graphically what happens in the Bayliner boat market. Briefly explain how each of the events affects supply or demand.

(3 points) Based on the graphs, tell whether equilibrium price or equilibrium quantity is indeterminate.

(3 points) Suppose you know that equilibrium price decreased and equilibrium quantity decreased. Which event (engine price increase or Sea Ray price decrease) had the greater impact on the Bayliner boat market? Explain.