DRAW # 9 AND SHOW WHAT HAPPENS WHEN WE SLIGHTLY RAISE THE PRICE ON THE MARKET EQUILIBRIUM CURVE-

Use supply and demand curves to show and explain how both the equilibrium price and quantity change in each case. a) The increasing adoption of over-the-top media streaming services lead to more people staying at home to watch movies rather than going to a movie theater. Show how this change in behavior affects the market for microwave popcorn. b) The severe winter storm in Texas agricultural regions caused a massive electricity generation failure and increased the costs of irrigation and energy. How would this affect the market for fruits and vegetables?

Suppose that the annual demand and supply curves for some good in a competitive market are QD = 26 – 2P and QS = −2 + 2P a: Solve for the equilibrium quantity and price.b: Neatly graph this market, showing the horizontal and vertical intercepts of the demand curve,the vertical intercept of the supply curve, and the equilibrium. Make sure to put quantity on the horizontalaxis.

How is the price of gasoline determined in a competitive market? What predictions can you make about the movement of price and quantity in the U.S.? Use mathematical equations and graphs.

a) Where does equilibrium occur in the market diagram? b) Describe what would happen in the market if price is incorrectly set above the equilibrium price. c) Describe what would happen in the market if price is incorrectly set below the equilibrium price.