For all questions complete this part first. Draw a demand and supply graph. Be sure to label the vertical Y axes as price and the horizontal X axes as quantity. Draw your demand and supply curves and label them D1 and S1 accordingly. Then indicate the equilibrium point on the graph and label it E1 draw a dashed line from the equilibrium point over to the price axes and label the point P1 draw another dashed line to the quantity axes and label it Q1.
1.Then indicate on your graph how a change in taste for the good will shift the curves or curve, and label the new equilibrium point. Label any new demand or supply curves you may have to draw as D2 and S2. Label any new equilibrium point you may have to draw as E2. Also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
2. Now draw a brand new graph. Once you have done this on this graph indicate how an increase in resource price would or would not shift one or more of the curves. Label any new demand or supply curves you may have to draw as D2 and S2. Label any new equilibrium point you may have to draw as E2 also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
3. Draw a brand new graph. On this graph indicate how a decrease in the price of a substitute good will or will not shift the curves and cause a new equilibrium point. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point you may have to draw as E2 also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
4. Draw a brand new graph. On this graph indicate how an increase in subsidies given will or will not change the graph. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point you may have to draw as E2 also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
5. Draw a brand new graph. On this graph indicate how an increase in the number of buyers with a simultaneous decrease in resource price will or will not change the graph. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point you may have to draw as E2 also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
6. Draw a brand new graph. On this graph indicate how a decrease in consumer price any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point you may have to draw as E2 also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
7. Draw a brand new graph. On this graph indicate how a decrease in the price of a complementary good with a simultaneous decrease in the number of sellers will or will not change the graph. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point you may have to draw as E2 and also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
8. Draw a brand new graph. On this graph indicate how a decrease in the price of a substitute good with a simultaneous increase in taxes will or will not change the graph. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point you may have to draw as E2 and also draw any new dashed lines that you may have to draw to the price and quantity axes and label them as P2 and Q2.
For all eight graphs, you are to state which if any of the curves shifted either demand or supply or both you are to state in which direction they shifted either out to the right or in to the left. You are also to state what happened to both equilibrium price and quantity. That is did equilibrium price increase or decrease or was it indeterminate? Did equilibrium quantity increase or decrease or was it indeterminist?