Exam 1 (20 points) Question 1. What happens to the equilibrium price and quantity if demand shifts to the left and supply shifts to the right? Explain your answer graphically. Question 2. In which of the following scenarios the equilibrium price and the quantity traded of an inferior good both decrease? Explain your answer graphically. a) A reduction in consumer income. b) An increase in the price of a substitute. c) A reduction in the price of a complement. d) A reduction in the cost of production. e) An increase in consumer income. f) a and b. g) a and c h) b and c. i) a, b, c. j) c and d. k) none