Supply Demand and Market Equilibrium 1. For each of the following scenarios, on the supply and demand diagrams below, illustrate the effect of the given shock (s) on the equilibrium price and quantity in the specified competitive market. Explain whether there is a shift in the demand curve, the supply curve, both or neither.+ (a) An unexpected temporary heat wave hits the South Island. Show the effect in the ice cream market in Christchurch. (b) A new government is elected in New Zealand that is less worried about the environment and introduces a subsidy for fertiliser use on Dairy farms. What is the effect in the dairy market? (c) New Zealand and the U.S. are major producers of Beef. There is a severe drought in New Zealand. Show the effect on the market for N.Z beef. < (d) Show the effect of the situation described in (c) on the market for U.S. beef. (e) The NZ Government bans tourists from certain countries. In response Air New Zealand decides to operate fewer international flights. What will happen to the market for flights to NZ? < (f) What will happen to the market for houses in Auckland if the government (c) New Zealand and the U.S. are major producers of Beef. There is a severe drought in New Zealand. Show the effect on the market for N.Z beef. < (d) Show the effect of the situation described in (c) on the market for U.S. beef. (e) The NZ Government bans tourists from certain countries. In response Air New Zealand decides to operate fewer international flights. What will happen to the market for flights to NZ? < (f) What will happen to the market for houses in Auckland if the government releases more land for building, but at the same time interest rates in New Zealand rise