Draw a graph showing the impact of students returning to campus in August on the market for pizza in a college town. If price stays the same would that be equilibrium? Why or why not? What will eventually happen in the market? What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Explain using supply/demand graphs.

Suppose that the government creates a new subsidy for producers of smoke detectors. If price stays the same would that be equilibrium? Why or why not? What will eventually happen in the market? What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Explain using a graph how this will impact the market for smoke detectors.

Suppose that the government impose a tax of $1 on the production of Nikes (Jordans). At the same time Nikes and Reeboks are substitutes and the price of Reeboks decrease. What happens to equilibrium price and quantity? Illustrate using a graph.

Assume that producers expect the price of orange juice to be lower in December. At the same time a new study just released states that drinking more orange juice will increase your chance of not getting cancer. What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Illustrate using a graph.

Assume that VCRs and videotapes are complements. When the price of VCRs fall and the price of plastic (used to make videotapes) rise, what should happen to price and quantity of videotapes. What happens to equilibrium price and quantity? Illustrate using a graph.