Use the models of demand and supply (and equilibrium) to analyze the following cases.

1. "As price falls the quantity supplied falls. As supply increases price falls." Explain why these two statements do not contradict each other. (Use demand/supply concepts/models to aid you in reasoning.)

1. Suppose that consumers consider coffee and tea as substitutes and tea and lemons as complements.
2. How, if at all will the imposition of an effective price ceiling on tea affect the price of coffee? Illustrate in diagram/s to aid you in reasoning. (State the effect on the price of coffee.)
3. How if at all will the imposition of an effective price ceiling on tea affect the price of lemons? Illustrate in diagram/s to aid you in reasoning. (State the effect on the price of lemons.)

1. There were periods where farmers were quite concerned about their incomes and the prices they received for their products. Through lobbying efforts, public demonstrations, and threats to "strike" they tried to get Congress to increase price supports for farm products. If they were to succeed in getting a support price (say, for rice) substantially above the equilibrium price, what would be the effects on:
2. supply for rice (or any farm products with the price support) in the market?
3. farmers' income?
4. income of other suppliers to rice farming such as fertilizer inputs?