Determine the effect upon equilibrium price and quantity sold with the help of demand and supply graphs if the following changes occur in a particular market

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Determine the effect upon equilibrium price and quantity sold with the help of demand and supply graphs if the following changes occur in a particular market:

a. If consumers’ income increases and the good is normal what happens to the equilibrium in the supply and demand market? Draw and explain.

Reason:

______________________________________________________________________________

b. If the price of a substitute good (in consumption) increases what happends to the demand of that substitute good. Draw and explain.

Reason:

______________________________________________________________________________

c. The price of inputs used to produce the good increases.

Reason:

 
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