Consider the market for iPods. For each of the events below, identify which of the determinants of demand and supply are affected, and indicate whether demand or supply is increased or decreased. Then, illustrate the effect of the event on the price and quantity of iPods with a supply-demand diagram.

A big tax cut increases everyone's wealth.

Demand will decrease.

Demand will increase.

Supply will decrease.

Supply will increase.

Explain which of the determinants of demand and supply are affected:

• answer : I believe that demand will decrease due to high tax but I am not sure so please provide the explanation with graph

A change in copyright laws raises the price of downloading music dramatically.

Demand will decrease.

Demand will increase.

Supply will decrease.

Supply will increase.

Explain which of the determinants of demand and supply are affected:

• Supply will be decrease is answer but please let me know that is right with graph

A strike by truckers raises the cost of transporting all goods.

Demand will decrease.

Demand will increase.

Supply will decrease.

Supply will increase.

Explain which of the determinants of demand and supply are affected:

I am not sure about this questions please explain with graph

Best Buy stores start giving away free MP3 players to anybody who wants one.

Demand will decrease.

Demand will increase.

Supply will decrease.

Supply will increase.

demand will increase is answer but I am not sure about graph and why

The price of tickets to a town's local theater is determined by market forces. Currently, the demand and supply schedules for tickets are as follows:

questions - The demand equation that corresponds to the above demand schedule is QD = 2,000 - 40P. (This demand schedule is not valid at prices above $50.)

Use the demand equation to verify that the demand equation is consistent with the demand schedule (do this for at least one point on the demand curve).