Suppose that the market for plain cheese pizza is initially in equilibrium.

a. Using a supply and demand graph, show the market for plain cheese pizza in equilibrium. Label the point of market equilibrium point E, equilibrium price P as $20 and equilibrium quantity Q as 140. And be sure to label the axes and curves!

b. Now suppose that the price of steak & cheese subs (a substitute to pizza) falls. Starting at the point of equilibrium in your supply and demand graph from a., show how this change will affect the market for pizza. Label the new point of market equilibrium E'. You may choose what you want for new equilibrium price and new equilibrium quantity but they should make sense. And be sure to label the axes and curves!

c. RESET back to a. Now imagine instead that the price of tomatoes increases. Using a supply and demand graph, show how this change will affect the market for plain cheese pizza. Label the new point of market equilibrium E". You may choose what you want for new equilibrium price and new equilibrium quantity but they should make sense. And be sure to label the axes and curves!

d. Again, RESET to a. and now suppose instead that the future price of plain cheese pizza is expected to rise. Using a supply and demand graph, show how this change will affect the market for plain cheese pizza. Label the new point of market equilibrium E"'. Can we definitively say what the effects of this change on equilibrium quantity will be? Briefly explain.