Question 1 c) What will happen in the market for cats if the income of the population who buy cats Draw a demand curve or supply curve and label it D1 or S1. On the graph, illustrate an Increase? I* increase in demand or supply and a decrease in demand or supply, and label the curve D2 or $2 and D3 or $3, respectively. Starting on demand curve or supply curve D1 or $1, explain the shift that would result from each of the following events: 3) Assume books and magazines are substitutes. What will happen in the book market if the price of magazines decreases? d) What will happen in the market for cars if the price of steel to make cars increases? bj What will happen in the lemonade market if a new technology is introduced in the production of lemonade?Question 2 Based on the graph shown below: Question 3 Consider the following supply and demand tables for bread. Price Supply Price of 1 loaf Quantity Supplied Quantity Demanded E 75 20 55 54 35 EEG 50 3) Draw the supply and demand curves for this market. Demand 10 20 30 ) Determine the equilibrium price and quantity? b) If price increase to $7, explain the changes that happen in the market. b) What is the equilibrium price and quantity?bj Suppose the price of gum is 80 cents a pack. Describe the situation in the gum market. Question 4 The demand and supply schedules for gum are: Price cents Qd (millions of packs a s (millions of packs a per pack) week] week 20 180 40 140 TO0 100 80 80 120 C) A fire destroys some factories that produce gum and the quantity of gum supplied TOO 40 140 decreases by 40 million packs a week at each price Explain what happens in the market for gum and illustrate the changes on your graph in Part (a). Draw a graph of the gum markets, label the axes and the curves and mark in the equilibrium price and quantity. *End of Exercise Questions**