5.7 An article in the Wall Street Journal described an increased demand in Spain for a luxury food: "free-range, acorn-fed Iberian ham." In 2018, the price of this type of ham jumped from 19.5 euros to 30 euros. One participant in the market exclaimed: "The prices are astronomical!" It takes more than three years to prepare ham that meets the Spanish govern- ment's standards for being labeled free range and acorn fed. Illustrate developments in the market for this type of ham using two graphs. One graph should illustrate the immediate effect of the increase in demand in the market for free-range, acorn-fed ham. This graph should also illustrate the long-run effect of the initial price increase. The other graph should show the short-run and long-run situations of a representa- tive Spanish hog farmer raising free-range, acorn-fed hogs. Be sure to correctly label all the curves in your graphs.

Do you use water for things that are beyond what is nec- essary to sustain life? What if the price of water in your home tripled? How would you respond? Are there activi- ties that you would change or stop doing? Briefly explain. Does your demand for water obey the law of demand?

What happens to the price and the quantity boughtand sold in the cocoa market if countries producingcocoa experience a drought and a new study is releaseddemonstrating the health benefits of cocoa? Illustrateyour answer with a demand and supply graph.

a. The recent statement given in October 2020 by French President undermined the sentiments of the Muslims all around the world. The Muslims of Pakistan decided to record their protest by boycotting French products. A recent survey shows that the shunning of French products has bought about 35 percent decrease in the sales within a month. Suppose, in September 2020, the market for Garnier hair color a French product was at equilibrium with an equilibrium price 1050 and equilibrium quantity of 12,000 in Pakistan. Analyze the impact of a boycott on the demand of Garnier hair color for the month of October 2020 in Pakistan and illustrate it graphically. Also, explain why or why not the demand has changed? b. Consider a market for Tea a normal good in Karachi. You are supposed to analyze and discuss the effect on the equilibrium output and the price in the Tea market in Karachi for the October, 2020 after the following changes (Other things held constant). In each case, explain your answer…