Instruction:Answer all three questions on a single sheet of paper, scan/take a picture, and upload it.

Question:Predict and graph how each of the following events would affect theequilibrium price (P*)and equilibrium quantity (Q*) in the immediate short run.

Event #1:The governor of Florida provides a subsidy to the producers of lemons in Florida.

a. Predict how this event would affect the equilibrium price (P*)and equilibrium quantity (Q*) in the immediate short run.

b. Graph how this event would affect equilibrium price (P*)and equilibrium quantity (Q*) in the immediate short run.

Event #2:The Skittles Republic's newspaper published yesterday the findings of a new study on chocolate: scientists discovered that eating chocolate daily reduces the risk of obesity by 80%.

a. Predict how this event would affect the equilibrium price (P*)and equilibrium quantity (Q*) in the immediate short run.

b. Graph how this event would affect equilibrium price (P*)and equilibrium quantity (Q*) in the immediate short run.

Event #3:Suppose that Corona beer and Budweiser beer are substitute goods. The price of Budweiser beer increases.

a. Predict how this event would affect the equilibrium price (P*)and equilibrium quantity (Q*) of Corona beer in the immediate short run.

b. Graph how this event would affect equilibrium price (P*)and equilibrium quantity (Q*) of Corona beer in the immediate short run.