Question 1

Draw a demand curve or supply curve and label it D1 or S1. On the graph, illustrate an increase in demand or supply and a decrease in demand or supply, and label the curve D2 or S2 and D3 or S3, respectively. Starting on demand curve or supply curve D1 or S1, explain the shift that would result from each of the following events:

a)Assume books and magazines are substitutes. What will happen in the book market if the price of magazines decreases?

\fQuestion 2 Based on the graph shown below: Price Supply 57 54 52 Demand 10 20 30 QuantityQuestion 3 Consider the following supply and demand tables for bread. Price of 1 loaf Quantity Supplied Quantity Demanded 5.50 10 75 $1 20 55 $2 35 35 $3 50 25 $5 60 10Question 4 The demand and supply schedules for gum are: Price (cents Qd (millions of packs a Qs (millions of packs a per pack) week) week) 20 180 60 40 140 80 60 100 100 80 80 120 100 40 140