Suppose that two concurrent changes occur in each of the following markets. In each case, indicate what will happen to the price and quantity traded as a result. Changes affecting demand 1. Incomes increase. 2. The price of a substitute product increases. 3. The price of a complementary product increases. 4. Population increases. 5. Buyers expect the price to fall in the future. Changes affecting supply A. The price of inputs (resources) falls. B. The price of a substitution in production increases. C. Technological improvement occurs. D. The number of suppliers decreases. E. Sellers expect the price to fall in the future. a) Assume that changes 1 and B occur, and the market is for an inferior product. Equilibrium price: increase Equilibrium quantity: no change b) Assume that changes 3 and D occur, and the market is for a normal product. Equilibrium price: increase Equilibrium quantity: increase c) Assume that changes 2 and E occur, and the market is for a normal product. Equilibrium price: increase Equilibrium quantity: increase d) Assume that changes 4 and D occur, and the market is for a normal product. Equilibrium price: increase Equilibrium quantity: increase