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Suppose the mango market in Malaysia is perfectly competitive. The cross-price elasticity of demand for mango with regard to the price of banana is 0.4.Other

Suppose the mango market in Malaysia is perfectly competitive. The cross-price elasticity of demand for mango with regard to the price of banana is 0.4.Other things being equal, critically analyse the effects each of the following situations will have on the equilibrium price and quantity of mango if:

(a)researchers found that bananas have cancer-fighting properties (use an appropriate diagram).(3 marks)

(b)the price of fertiliser used for mango rises (use an appropriate diagram).(3 marks)

(c)both events in (a) and (b) happen simultaneously (no diagram is required).(2 marks)

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