id is 116

2. a. Explain how each of the following events would influence market prices/quantities. 6.5 (You have to explain with 4 graph for each event) i. The surgeon general announces that eating oranges lowers the risk of a heart attack (market for oranges). ii. Terrorists destroy a major oil pipeline in Iraq (market for oil) ili. Immigration increases in the US by 20% (market for labor -what's the price here? ) iv. Consumers start getting their news from the internet (market for newspapers) V. Real income in the US increases (the market for BMW's) b. The demand for strawberry jam in Japan is given by the following equation: 6 Qd= 800 - 3P - PN+ 0.5 1 Where P is the price of strawberry jam, PN is the price of strawberry, and I is average consumer income. Required: i. What happens to the demand for strawberry jam when the price of strawberry goes up? Are jam and strawberry demand substitutes or demand complements? ii. What happens to the demand for strawberry when average consumer income rises? iii. Graph the demand curve for strawberry when PN = 100 and I = 20, 000+last three digits of your ID