Question: Give an example of each of the following scenarios. It has to be YOUR OWN example, not the one mentioned in class or the one found in the book. Your examples should match the problem and be as specific as possible. For example, if you are asked to provide an example of increased demand due to the good being more popular, saying " Umbrellas are more popular " is not good enough since it doesn’t explain what happens to demand and why umbrellas are more popular. If you say " New Harry Potter movie is released which increases demand for round glasses" that would be a good example! It shows why the good became more popular and how it affected demand for that good.

1. Demand increases because good becomes more popular
2. Demand decreases because there are less consumers in the market
3. Demand increases because substitutes become more expensive
4. Demand decreases because income increases and good is an inferior( "not so good" ) good
5. Supply decreases because there are less sellers
6. Supply increases because inputs become cheaper
7. Explain what would happen to equilibrium price of orange juice if the hurricane destroys crops of oranges in Florida.
8. Explain what would happen to the equilibrium price and quantity of orange juice if apple juice becomes more expensive
9. Suppose that you were hired to do research on market of orange juice. What you found out is that sales of orange juice increased in the past 20 years while price of orange juice increased as well. Explain how this is possible when economic theory specifically says that if price of a good increases, then consumers demand less of it.

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