A comparison of two businesses Diagram 1 illustrates the market for children's toys, or indeed many manufactured products. (a) Illustrate on the diagram a rise in demand for children's toys. Draw the new equilibrium. (b) Following the rise in demand for their product, how is the factory owner likely to change her production levels in response to both higher demand and higher prices? (c) How easy will this be for the factory owner, presuming that skilled labour and sufficient raw materials are available to increase production levels