QUESTION 4 4 A. What is the effect of a decline in the price of software such as the latest edition of Windows on the market for laptops? 1 . Draw or sketch a market graph with the initial equilibrium labeled Pe and Qe. Remember to label the market. plement 2. Explain the change. Is it a change in demand or supply? Which determinant? 3. Sketch or draw the change in demand or supply on the graph you made (1), and label the new equilibrium point with Pe2 and Qe2. 4. Answer the question: Does P VorT, does Q Tory? 5. Scan or take a picture of your graph email it yourself (open on your computer and use the snip tool to cut and copy it to your answer sheet). Insert your graph here. 4 B. What is the effect of an increase in the price of water for irrigation use on the market for California grown crops such as strawberries or almonds? 1/ Draw or sketch a market graph with the initial equilibrium labeled Pe and Qe. Remember to label the market. 2/ Explain the change. Is it a change in demand or supply? Which determinant? 3/ Sketch or draw the change in demand or supply on the graph you made (1), and label the new equilibrium point with Pe2 and Qe2. 4/ Answer the question: Does P VorT, does Q Tor? 5/ Scan or take a picture of your graph email it yourself (open on your computer and use the snip tool to cut and copy it to your answer sheet). Insert your graph here. 4 C. During the winter, about 20 percent of the lettuce crop was destroyed by flooding. As a result of the flooding during the winter, you would expect that (draw the graph, show the shift, then make your choice): A. the price of lettuce would T, the supply of lettuce would T, and the Qd of lettuce would B. the supply of lettuce would &, the price of lettuce would , and the Od of lettuce would C. the price of lettuce would T and both the Qs of lettuce and the Qd of lettuce would T D. the supply of lettuce would J, the price of lettuce would 1, & the demand for lettuce would QUESTION 5. In an article in the Lewiston Sun Journal, 1 March 2008, the rising cost of flour was discussed as it impacts the baking industry (bakeries). "With the cost of a 50-pound bag of flour at $24, up from $10.25 just a year ago, and heading toward $30.00" consider what this means for bakeries. Explain the impact of the rise in the "cost of flour" on the market for bakeries. Include a market graph in your response