FRQ#1: Draw and label a supply and demand graph for surfboards below. Identify equilibrium price and quantity.

a) In 2005, the world's largest producer of surfboard foam stopped production. Demonstrate on the graph the effect of this change.

b) Now assume that that surfing becomes widely popular. Demonstrate on the graph the effect of this change

. c) Compared to the original equilibrium, identify the effect that parts (a) and (b) together have on:

i. Equilibrium price

ii. Equilibrium quantity