Dollar General Corp. and Dollar Tree Inc. both reported higher quarterly sales after they raised prices and attracted cash strapped shoppers to their stores to shop for groceries and other essential products. Although fewer shoppers visited the chains during the quarter many spent more on each trip. Recently, retailers such as Walmart and Target reported that consumers are reducing their discretionary spending while they are placing greater priority on buying food and fuel.

1. Determine the equilibrium price and quantity using the supply and demand model.
2. Determine if a given scenario will cause a movement along a given demand curve or a shift in the demand curve