3) In each of the following cases, explain what effect the changes will have on the equilibrium price and quantity in the following markets:
Market Change
a) computer technicians The use of computers in business continues to expand; while at
the same time, the number of graduates in computer technology
program increases
b) anti-cholesterol drugs The cost of producing anti-cholesterol drugs increases; and at the
same time, medical problems associated with high cholesterol
continues to increase.
c) full-sized SUVs The government imposes a special excise tax on full-sized S.UYs;
while at the same time. Gas prices decrease dramatically.
d) organic spinach Medical reports indicate that spinach is an effective anti-cancer
food; while at the same time a new, faster-growing variety of
spinach is developed

4) Assume the market for coffee is initially in equilibrium.
a. Draw a demand and supply diagram to illustrate the initial equilibrium.
b. Explain the impact on the market if there is simultaneously an increase in the price of coffee beans and a decrease in the price of tea.
c. Graphically illustrate the impact on the diagram you prepared for part (a).