Exercise 2 Diagram 1 illustrates the market for children's toys, or indeed many manufactured products. (a) Illustrate on the diagram a rise in demand for children's toys. Draw the new equilibrium. (b) Following the rise in demand for their product, how is the factory owner likely to change his production levels in response to both higher demand and higher prices? (c) ) How easy will this be for the factory owner? Identify the main factors that have potential influence on it