SHOW IN A DIAGRAM THE EFFECT ON THE DEMAND CURVE, THE SUPPLY CURVE, THE

EQUILIBRIUM PRICE, AND THE EQUILIBRIUM QUANTITY

1.Question: Will Shakespeare is a struggling playwright in sixteenth-century London. As the price he

receives for writing a play increases, he is willing to write more plays. For the following situations,

use a diagram to illustrate how each event affects the equilibrium price and quantity in the market

for Shakespeare's plays.

Case 1: The playwright Christopher Marlowe, Shakespeare's chief rival, is killed in a bar brawl.

Case 2: The bubonic plague, a deadly infectious disease, breaks out in London.

Case 3: To celebrate the defeat of the Spanish Armada, Queen Elizabeth declares several weeks of

festivities, which involves commissioning new plays.

2.Question: The small town of Middling experiences a sudden doubling of the birth rate. After three

years, the birth rate returns to normal. Use a diagram to illustrate the effect of these events on the

following.

Case 1: The market for an hour of babysitting services in Middling today.

Case 2: The market for an hour of babysitting services 14 years into the future, after the birth rate has

returned to normal, by which time children born today are old enough to work as babysitters.

Case 3: The market for an hour of babysitting services 30 years into the future, when children born today

are likely to be having children of their own.