Question: For each case below, identity the effects on demand and/or supply and on equilibrium price and equilibrium quantity in a competitive market for product A; that is, do price and quantity rise, fall, remain unchanged, or are the answers indeterminate, depending on the magnitude of the shifts in supply and demand? Explain each of your answers

a) The price of a substitute good B falls, while a subsidy in the production of A is offered by the Government.

b) Product A becomes more fashionable while price of complementary good C falls.

c) The demand for A is affected by a rise in incomes (assuming A is a normal good), while there is an excise tax imposed on the production of A

d) The prices of steel which is required to produce A rises, while the price of B a substitute for A rises.