Could you please check my assignment and help me with the graphs part of the assignment. Thank you.
Analyzing the Market (Changes in Supply and Demand} Part One 1. Draw the market for shampoo. Label the original demand and supply curves D and 5. Label the original market equilibrium price Fe and the original market equilibrium Qe. Now suppose there is a decrease in government regulations in the production of shampoo. Show this change on the graph. Label the new supply curve 51. Add arrows showing the direction of the change. Label the new market equilibrium price P1 and the new market equilibrium C11. Add arrows to show the direction of the changes. Answer the questions below using properly terminology. a. Did the change in regulations cause an increase in the supply or quantity supplied of shampoo? The change in regulations (Deregulation) caused an increase in quantity supply of shampoo. b. How was price impacted? The price was decreased. c. Did the decrease in government regulations cause demand or quantity demanded to increase? Explain. Decrease in government regulations caused an increase in demand. I know that Government intervention increases cost of production which results in less supply. So, deregulation allows for more supply. Based on this, I know that an increase in demand will cause the equilibrium price to decrease. This causes an increase in Quantity Demanded. Part Two: Draw the graph for each of the markets discussed in Questions 2-10. On each graph, label the axes, the curves, the original and new equilibriums, and add directional arrows to show the changes. Labeling is very important on the AP exam, so you must get in the habit of fully labeling all graphs. In some scenarios, you might not be able to draw the change in the market because you are not given enough information. In those situations, no graph can be drawn, but you need to identify the part of the new equilibrium that increased or decreased and identify the part of the new equilibrium that cannot be determined. 2. Suppose the price of Campbell's soup decreases. What will happen in the market for Lipton soup? Based on the law of demand, I can infer that if the price of the soup decreases then the quantity demanded will increase. 3. The price of video game consoles falls while the price of video games remains unchanged. What will happen in the market for video games? Based on the law of demand, I can infer that these 2 products are complements. A decrease in the cost of video game consoles will cause the demand for video games to increase. 4. In the market for diapers, how will a baby boom in the United States impact the market? I know that based on the shifters of demand. A change in demand is when a factor other than price, causes people to buy more or less of the product. So, I know this will result in an increase in diapers. 5. Suppose the government issues a report that radiation from cell phone use causes hair loss. How would the market for cell phones be impacted? A change in demand is when a factor other than price, causes people to buy more or less of the product. So, I know this will result in a decrease in cell phones. 6. How will an increase in the cost of peanuts impact the market for peanut butter? An increase in the price of peanuts will cause the demand for peanut butter to decrease. 7. Suppose the government decides to increase the tax on the producers of tobacco products. What will happen in the market for tobacco products? The increase tax will cause a decrease in supply. 8. Suppose global warming causes the demand for winter coats to fall, while a decrease in the cost of down (the stuffing inside the coats) causes the supply of winter coats to increase. What will happen in the market for winter coats? Cannot be determined. 9. The demand for electric cars increases more than the supply of electric cars increases. What will happen in the market for electric cars? To maintain equilibrium the price of electric cars will increase. 10. The demand for smart phones increases as the supply of smart phones increases. What will happen in the market for smart phones? The Quantity Supplied is increase, but the Price cannot be determined due to the double shift rule. You cannot tell
