Use the following theories to explain the law of demand.

(i) Income effects

(ii) Substitution effects

correctly stating a theory, law of demand, and then using the theory to explain the law of demand

2. Define the concept of short run and Long run. example for each to illustrate the difference between a short-run and long-run production process. Examples must be yours not from online resources.

3. Explain how a firm may transition from short-run production operations to long-run production operations. In your explanations, clearly state the production law(s) applicable to the short-run and long-run production periods. Use graphs to illustrate your explanations.

For explaining both production periods, and as part of your explanation, draw and label a short-run production graph and a long-run production graph.