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We wish to analyze the economic effects of two changes in the market relative to the equilibrium represented in question 2: a. An exotic pest
We wish to analyze the economic effects of two changes in the market relative to the equilibrium represented in question 2: a. An exotic pest destroys a large portion of the iceberg lettuce crop. b. An excellent season results in a bumper crop of romaine (a substitute for iceberg) lettuce, lowering its price. Draw a supply and demand model for each of these two changes, and illustrate the nature of the adjustment to the market equilibrium (make sure you label the axes and curves carefully and clearly to distinguish the \"before\" and \" r\" positions of the curves and the equilibrium prices and quantities). In the attached table indicate (with \"+\" for increase, \"-\" for decrease, and \"'2\" for uncertain the direction of change in each of the following variables measured in question 2 in the model of the iceberg lettuce market (do not calculate any numbers for this part): Quantity of iceberg lettuce sold Price paid by consumers Price received by producers Total producer revenue Producer surplus Consumer surplus
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