a.Suppose that the market for gold is perfectly competitive. Illustrate the long run equilibrium in the gold market. (10 pts)

b.Now suppose that the demand for gold increases due to an increase in demand for jewellery (as an example, during the wedding season in India, global demand for gold increases. It is customary in India to gift the newly wed couple jewellry.) Illusrate in your plot from part a, what happens to the long run equilibrium for gold. (10 pts)

c. Compare the initial and the final equilibrium with gold. What happens to equilibrium quantity and price of gold? (5 pts)