(Solved): 1. For each of the following markets draw the demand and supply model. Label the demand curve (D1), ...

1. For each of the following markets draw the demand and supply model. Label the demand curve (D1), supply curve (S1), axes (Price, Quantity), equilibrium price and quantity ( \( \mathrm{P}^{*} 1 \) and \( \left.\mathrm{Q}^{*} 1\right) \). Then, on the same graph, draw and show how the given events will shift the demand and/or supply curves. Also show how \( P^{*} \) and \( Q^{*} \) will be affected. Label the new demand curve (D2) and supply curve (S2) and the new equilibrium price and quantity \( \left(P^{*} 2\right. \) and \( \left.Q^{*} 2\right) \). Clearly say what will happen to \( P^{*} \& Q^{*} \). a. Draw the market for Milk at Safeway. The price of milk at Rosauers (a Safeway competitor) increases. b. Draw the market for orange juice. There is a major hurricane that destroys a significant part of Florida's orange crop. c. Draw the market for a Math textbook. The instructors make the textbook a requirement (it used to be optional) and at the same time, the price of paper needed to make the textbook decreases. d. Draw the market for Hunt's Ketchup. There is a technological advancement in the production of ketchup and at the same time the price of Heinz Ketchup decreases. Assume that Heinz Ketchup and Hunt's Ketchup are substitutes.