Question 1

1a. For this drought situation affecting the supply of cream, the supply of chocolate would
decrease because of the higher price. As a result, the supply curve would shift to the left. The
demand curve would remain unchanged. As a result of the leftward shift of the supply curve, the
equilibrium price would increase and quantity would decrease.
1b. For this situation the demand would increase, supply would also increase because of those
increasing it would cause the equilibrium price to rise and so would the equilibrium quantity
would also increase too.
1c. For this situation, demand would decrease which would result in a leftward shift of the
supply curve(decrease). With these two factors being affected this would cause the equilibrium
price to decrease/rise and the equilibrium quantity would decrease.
1.d. For this situation, demand would remain the same and this would cause the supply to
increase. The supply curve will shift rightward leading to an increase in equilibrium price and a
fall in equilibrium quantity.

Question 2
2a. The demand for hamburgers increases which represents a rightward shift of the demand
curve. This would result in a rise in the equilibrium price and also raise the equilibrium quantity.
2b. The demand for hamburgers would decrease which represents a leftward shift in the
demand curve because of this, it would cause the equilibrium price to fall and the equilibrium
quantity to fall.
2c. The fall in income would cause the demand for hamburgers to decrease. In this situation,
this causes a leftward shift in the demand curve. Ultimately causing the equilibrium price to fall
and the equilibrium quantity would follow.
2d. The demand for hamburgers as an inferior good would cause the demand to increase. This
would be a rightward shift of the demand curve. This would result in the rise of equilibrium price
and the equilibrium quantity would follow.
2e. A fall in the price of a substitute would result and the demand to decrease. This would be a
leftward shift of the demand curve. The equilibrium quantity e would fall and the equilibrium
quantity would follow.

Question 15
15a. Quantity supply goes down, leftward shift, demand goes down, equilibrium quantity
decreases same as equilibrium price.
15b. Increase in demand, rightward shift, increase in equilibrium quantity, increase in equilibrium
price.
15c. Quantity supplied would increase, rightward shift in supply curve, equilibrium quantity will
increase, equilibrium price will fall
15d. Demand would decrease, leftward shift of demand curve, decrease in equilibrium quantity,
decrease in equilibrium price.
15e. Demand would decease, leftward shift in demand curve, decrease equilibrium price,
decrease equilibrium quantity