Question: A survey indicated that chocolate is Americans' favorite ice cream flavor. For each of the following, indicate the possible effects on demand, supply as well as equilibrium price and quantity of chocolate ice cream.

1. A severe drought in the Midwest causes dairy farmers to reduce the number of milk-producing cattle in their herds by a third. These dairy farmers supply cream that is used to manufacture chocolate ice cream.
2. A new report by the American Medical Association reveals that chocolate does, in fact, have significant health benefits.

1. The discovery of cheaper synthetic vanilla flavoring lowers the price of vanilla ice cream.
2. New technology for mixing and freezing ice cream lowers manufacturers' costs of producing chocolate ice cream.

Question: Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following events.

a. The market for newspapers in your town Case 1: The salaries of journalists go up.

Case 2: There is a big news event in your town, which is reported in the newspapers.

1. The market for St. Louis Rams cotton T-shirts Case 1: The Rams win the Super Bowl. Case 2: The price of cotton increases.

1. The market for bagels

Case 1: People realize how fattening bagels are.

Case 2: People have less time to make themselves a cooked breakfast.

**THERE ARE TWO QUESTIONS IN THE PICTURE, ANSWER IT**

Question: Suppose that the supply schedule of Maine lobsters is as follows: Price of lobster Quantity of lobster supplied (per pound) (pounds) $25 800 $20 700 $15 600 $10 500 $5 400 Suppose that Maine lobsters can be sold only in the United States. The U.S. demand schedule for Maine lobsters is as follows: Price of lobster Quantity of lobster demanded (per pound) (pounds) $25 200 $20 400 $15 600 $10 800 $5 1,000 a. Draw the demand curve and the supply curve for Maine lobsters. What are the equilibrium price and quantity of lobsters