economics

Applications 1. Suppose the price of a litre of gasoline rises. Construct a graph to illustrate the effect on the quantity of gasoline demanded, showing both the initial situation and the effect of the price change. 2. Construct a graph to illustrate the effect that an increase in the price of apple juice would have on the demand for orange juice. 3. The government announces an increase in the tax on gasoline. Graph the effects of this increase on the supply of gasoline. 4. The price of apple juice has increased substantially due to a blight that has destroyed farmers' crops. Graph the effect of this price change on the supply of apple juice, showing both the situation before the blight and after