Explain the following details for each of the 5 events given below:

a. if it is a demand or a supply related event (shifts of the supply/demand curves and their directions) and the appropriate non-price determinant of supply or demand associated with the event.

b. the short-term impact on prices and output (rationing function)

c. differentiate between a change in quantity demanded (supplied)cand a change in demand (supply) for each case. Why? Explain.

d. Identify the conditions which can result in the guiding function and the consequent impacts on equilibrium prices and output, changes in both the short run (rationing) and long-run (guiding) equilibrium prices and quantities before and after each event

Events:

1. A major flood this summer/fall destroys a large number of cranberry fields in the major producing regions of Wisconsin and Massachusetts.

2. The scientists in the Plant Genetics department of the University of Wisconsin - Madison discover a way to double the number of cranberries produced by each cranberry bush.

3. The American Nephrology Association announces that drinking cranberry juice can reduce the risk associated with kidney stones /failure among the elderly population.

4. An increase the demand for Apple Cider Juice (it has chemical properties similar to Cranberry juice) raises the price of this product in the market.

5. The sub-population of the elderly population grows in the U.S. market