(a) In each of the following examples explain the effects of the changes on equilibrium price, equilibrium quantity, demand and supply | (i) Average incomes increase (ii) The cost of raw materials falls (iii) The population decreases (b) Using diagrams to help with your answer show the difference between a price floor imposed by the government on a good and a production subsidy. How does this affect the price of the product and the quantity in each case?

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