4. From the above example, what would happen to the equilibrium price and quantity if the number of sellers of Good Z increases in the economy?
4. From the above example, what would happen to the
5. Suppose tea and sugar complements to each other. The price of sugar goes down by 10% on the other hand production cost of tea goes up by 10%. Explain what will happen to the market of tea.
6. Let X and Y be substitute goods and price of X goes up by 25% followed by a 25% increase in government subsidy in the production of good Y. Analyze what will happen to the market of good Y.
7. Suppose market of Toyota Cars are initially at equilibrium. Now preference towards Toyota cars have gone up while government has imposed a restriction on imports of Toyota cars. Draw a diagram explaining how the market of Toyota cars will react due to these events given that Impact on the demand side is higher than on the supply side.
8. Consider the market of coffee which is currently in equilibrium. Assume that production cost of coffee goes up by 150% whereas number of buyers of coffee has increased by 20%. Explain how the equilibrium price and quantity will change following these events.
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