1. When there is an increase in peoples' income in an economy, people buy

more cars. Is this an increase in quantity demanded? Why or why not?

2

A) Because of Covid-19, the number of suppliers of an educational learning tool

has decreased. How does this affect the supply of that good?

B) If your company is one of those educational learning tool suppliers who is still in business

and one of your component suppliers is raising prices significantly in July of 2022, how

will this affect your supply before July?