EXERCISE 1 Let's imagine a market that is in equilibrium (with demand showing a negative slope and supply showing a positive slope): show how the market equilibrium changes considering the following circumstances affecting the demand curve: a) b) d) 1') Fish market: Recent research shows that the quantity of fish caught in the sea has too much mercury, so that a rich fish diet can have negative consequences on humans' health. Flights BCN to Paris: Hotels in Paris have been decreasing prices as a way to attract more tourists. Flights New York to Paris: The dollar exchange rate has increased, making the Euro more expensive in terms of dollars. Housing market: The EURIBOR, the interest rate index most commonly used in the variable mortgage, has been increasing over the last 12 months. Bikes in China: The economic growth experienced in China increases the average income (the Chinese population considers cars a normal good and bikes an inferior one). A fire has destroyed 50% of Picasso's paintings; this is not affecting the willingness to have Picasso's work