Have in mind that goods B, C, and Dare related goods, and each operating in a perfectly competitive market to answer the following questions :

a. As the price of Good Bsees an increasefrom $4 to $5, the quantity demanded for it falls from 100 units to 60 units. Based on this information, find [calculate] the price elasticity of demand for this overall range.

b. Good Bis an input for Good C. Illustrate the effect of the price change from part (a) on a fully labeled supply and demand graph for Good C. Please label the quantity and / or quantities and equilibrium price(s). Make sure to use arrows to indicate any shifts in the graph.

c. Uponyour graph from (b), shade the CS [consumer surplus] in market for Good Cafter the change in part (a).

d. Have in mind that the equilibrium price for Good Dis $5, and the EQ[equilibrium quantity] is 40 units. The cross-price elasticity of Good Dwith Good B is 2. Use this information to answer the following questions :

i. Are Good Dand Good B normal goods, inferior goods, complementary goods, or substitute goods? why?

ii. Calculate the new equilibrium quantity of Good Dafter a 50% price increase for Good B.