Graphically and in words explain what will happen to equilibrium price and equilibrium quantity in each case. If you cannot determine the P* and/or Q*, be sure to say so. Assume ceteris paribus unless otherwise noted.

1.  There is an increase in the price of Root Beer and at the same time there is a decrease in the price of sugar (assume Coke and Root Beer are substitutes). Show what will happen in the market for Coke.  (Sugar is used to make Coke, in case you don't know).

2.  There is an increase in the price of steel and at the same time there is an increase in the income of the population. Show what will happen in the housing market (assume houses are a normal good and that steel is used to build houses).

3.  There is a decrease in the price of flowers.  Show what will happen in the market for vases (assume flowers and vases are complements).

4.  There is an increase in the price of rubber and at the same time there is an increase in the technology used to produce tires.  Show what will happen in the market for tires.

5.  There is a decrease in the price of lemons. Show what will happen in the lemonade market.

6.  Assume mustard and pickles are complements. Cucumbers are used to make pickles. Pickles are an inferior good. What will happen in the market for pickles if the price of mustard increased and at the same time the price of cucumbers decreased, and at the same time the income of the population decreased..