Question 1 a. Do you agree with the following statements? Explain your answers. i. The price of butter rises, causing the demand for another good to fall. This implies that the goods are substitutes. [2 marks] ii. During the pandemic, incomes fell for many Bahamians this change would likely lead to a decrease in the prices of both normal and inferior goods. [2 marks]| ili. If the demand and supply of lobster increases at the same time price will rise. [2 marks]| iv. The price of milk falls. This causes an increase in the price of good cheese. Therefore, milk and cheese are complements. [2 marks] b. Explain and illustrate each of the following statements using supply-and- demand diagrams. Show the impact on equilibrium price and quantity. i. Laptops - There is increased access to wireless technology and lighter weight products are available. Microchips a component of laptops are cheaper as new technology has come online. [3 marks] ii. Lychee - Production in Canada totalled 1.5 million barrels in 2018, a 40 percent increase from 2017. Demand increased by even more than supply, over the same period. [3 marks] ili. Gasoline - The price of sedans rises and electric cars have become more popular [3 marks] iv. Wool coats: New knitting machines are invented and insect infestation destroys most of the cotton crop in Canada [3 marks]