TOPIC: CHANGES IN DEMAND AND SUPPLY

USING THE CETERES PARIBUS ASSUMPTION, ILLUSTRATE AND EXPLAIN THE CHANGE (SHIFT TO THE RIGHT OR SHIFT TO LEFT) IN THE DEMAND OR SUPPLY CURVE AND WHAT WILL HAPPEN TO THE EQUILIBRIUM PRICE OF GOOD X BASED ON THE FOLLOWING SITUATIONS: (In answering, please label your graph properly)

A. Personal Income Taxes are increased.

B. Cost of Production of Good Y increased.

C. Fire destroyed the factory of Good X.

Note1: In each of the Situation, show a graph that would illustrate the change (if any) and then show what will happen to the equilibrium price. Explain your answers thoroughly.

Note 2: You may submit handwritten answers.