Lesson 3-Homework: Demand, Supply and Market Equilibrium Analysis 1. In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction. a. There have recently been some important cost-saving inventions in the technology for making paint. (5 points) b. Paint is lasting longer, so that property owners need not repaint as often. (5 points) c. Because of severe hailstorms, many people need to repaint now. (5 points) d. The hailstorms damaged several factories that make paint, forcing them to close down for several months. (5 points)Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. State your responses under each question (a-hi. Also sketch a market diagram to support your answer. Each of your sketches should be handwritten on separate sheets of paper, clearly labeled. scanned, and uploaded with your typed responses a. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. (5 points} The winter is exceptionally cold. (5 points) A major discovery of new oil is made offthe coast of Norway. {5 points] The economies of some major oil-using nations, like Japan, slow down. (5 points) A war in the Middle East disrupts oil-pumping schedules. (5 points) Landlords install additional insulation in buildings. (5 points) The price of solar energy falls dramatically. (5 points} Chemical companies invent a new, popular kind of plastic made from oil. [5 points) Ignrhfnapc' Lesson 3 Discussion: Equilibrium, Demand, and Supply Choice Equilibrium in both product and service markets is not a static concept. It is always changing. Changes in the determinants of both demand and supply behavior cause changes in market outcomes (i.e., on market price and quantity). The purpose of this assignment is to help you predict the likely impact on market outcomes due to changes in events affecting buyer and seller behavior. Initial Post Is the following statement true orfalse? An increase in both demand and supply of a product will always result in an indeterminate market outcome for either product price or product quantity. NOTE Your initial post should not exceed 350 words