Textbook Problem

Explain the effect of the following situations:

1. a. Population growth surges rapidly.
2. b. The prices of resources used in the production of good X increase.
3. c. The government is paying a $1-per-unit subsidy for each unit of a good produced.
4. d. The incomes of consumers of normal good X increase.
5. e. The incomes of consumers of inferior good Y decrease.
6. f. Farmers are deciding what crop to plant and learn that the price of corn has fallen relative to the price of cotton.