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8:56 .I v: [Dr H s3.amazonaws.com [I] Homework Two Show your work and/or explain all your answers! 1 (10 points).a. Briey explain why a change in the price of corn will not affect the demand for corn. b. Briefly explain why a change the supply of corn will not affect the demand for corn. 2. (24 points) The table below gives three different demand schedules for apple juice, 01.02, and D3. a. Suppose that the demand for applejuice is initially given by Dz. If the price of orange juice falls (a substitute good), what is the new demand for apple juice -- D1, D2 or 03? b. Suppose that the demand for apple juice, a normal good, is given by D2. If an economic expansion causes consumer incomes to rise, what is the new demand for apple juice -- D1, Dz, or D3? c. Suppose that, at a price of $6 per gallon, the quantity demanded of apple juice is 1200 gallons. If a baby boom causes population in this market to grow, but the price remains at $6. what is likely to be the new quantity demanded of apple juice according to the table above? d. Suppose that, at a price of $7 per gallon, the quantity demanded of apple juice is 1100 gallons. If the local health authority warns that apple juice contains large quantities of harmful pesticides, what is likely to happen to the demand for apple juice in this market? lfthe price falls to $6, what is likely to be the new quantity demanded of apple juice after the public health warning? e. Suppose that most people like to drink apple juice while eating peanut butter. If the price of peanut butter falls, what is likely to happen to the demand for apple juice? f. Suppose that the demand for apple juice is currently given by D1 and the price of applejuice falls from $8 to $7. How does this price decrease affect the demand for apple juice? OPEN IN... +