Directions:Answer all the questions below on a separate sheet of paper, scan/take a picture, then upload it.

Hint:

a. On your graph, you must show the P*1, Q*1, E1, P*2, Q*2, E2

2. You do not need numerical values on the X-axis and Y-axis.

b. In your prediction box or column, you must state what will happen to the P* and Q*.Example of prediction:P* increases and Q* decreases.

QUESTION:

Predict and graph how each of the following events would affect the equilibrium price and equilibrium quantity in the immediate short run.

a).Event:The price of fertilizer for corn decreases. How would this event affect the equilibrium price and equilibrium quantity of corn in the immediate short run?

Predict:

Graph:

(b) Event:The U.S government imposes a 20% tariff (tax) increase on electronic devices imported from China. How would affect this event affect the equilibrium price and equilibrium quantity of Chinese-made electronic devices in the U.S in the immediate short run?

Predict:

Graph: