With the help of a diagram, answer the following questions.

1. Engineers have just discovered a more efficient way to produce aluminium that decreases the cost of production. Assuming that the world aluminium market is perfectly competitive, what is expected to happen to market price and quantity in the short run (ceteris paribus)?

1. Vietnam is a large rice producer. The market has recently been affected by two events: (i) Urban growth has decreased the amount of land available for growing rice; (ii) The state has increased its subsidies to rice producers. Assuming that the world market for rice is perfectly competitive, what would happen to market price and quantity in the short run (ceteris paribus)?