Events may affect either demand or supply of Product X (inferior good). In the right-hand columns indicate whether demand or supply is affected by each event. Write increase or decrease in the space provided.

EVENT DEMAND SUPPLY

1. Labor productivity rises for producers of Product X

2. Price of a substitute good for Product X rises

3. Consumer incomes rises

4. Sales tax on Product X increases from 0% to 10%

5. Price of raw material used to produce product X declines

6. Price of complementary good to product X declines

7. Consumers expect Product X prices to decline tomorrow

8. The manufacturing plant of Product X is run by oil. Price of oil increases.

9. Price of complement in production of Product X increases

10. Sellers expect Product X prices to decrease in the future

11. Price of substitute in production of Good X increases

12. Government subsidises the production of Product X

13. Consumption of product X is shown to be healthy, thus people prefer to buy Product X

14. Product X is well advertised

15. Consumers expect the price of product X to increase tomorrow