(Part2)D) What price will ultimately be the outcome in this market?E) What quantity is supplied and demanded at the equilibrium price? Q11 - Draw hypothetical supply and demand curves for tea. (You do not need to include this in the assignment.) For each of the following examples either supply or demand will be affected.In each example say whether supply or demand is affected, and how they are affected, meaning are they increased or decreased.Once you identify which curve changes and how it changes, explain or describe how the equilibrium price and equilibrium quantity will be affected.Example: Consumers have more income and tea is a normal good. (This is a change in demand. It will increase demand or shift it to the right. This will lead to an increase in the equilibrium quantity and an increase in the equilibrium price.)a. Severe weather wreaks havoc with the tea crop.b. A medical report implying tea is bad for your health is published.c. A technological innovation lowers the cost of producing tea.d. Consumers incomes falls (Assume tea is a normal good.

01 - Why is price inversely related to quantity demanded? QZ - State the law of supply. 03 - List four shift factors of demand and explain how each affects demand. Q4 How is a change in a shift factor different from a change in price? Q5 - Mary has just stated that normally, as price rises, supply will increase. Her teacher grimaces. Why? (Hint: Is this a shift factor of supply or is it a change in price along a supply curve?) QB - List four shift factors of supply and explain how each affects supply. Q7 Consider the demand for a good and the price of a substitute good rises. What happens to demand for the good? Give an example. Q8 - It has just been reported that eating meat is not good for your health. The price of red meat has declined. Why? 09 Assume that the price of gas has recently increased by one dollar per gallon. In the long term how will this affect the demand for more fuel-efficient cars? 010 -Using the following exhibit, answer the following questions. 5 . EXCESS supply . or SUV lUS ' p O O. f' An abovevelelbnum price i \"E. \"giEqmlmr-um price '-.A belowequillbnum price (5 per gallon) in ', W ,7 ,. Excess demand 0 or shortage l l ' ' l 300 00 500 600 700 800 900 Quantity of Gasoline (millions of gallons) Price (per gallon) Quantity demanded Quantity supplied $1 .00 800 500 $1 .20 700 550 $1.40 600 600 $1 .60 550 640 $1 .80 .500 680 $2.00 460 700 $2.20 420 720 A) At a price of $1 .20 what is the quantity supplied? B) At a price of $1 .20, what is the quantity demanded? C) Considering A and B, what will happen to the price? Explain how or why the price adjusts in this situation