I'm really struggling on understanding the "Graph Map" section on the images I attached, especially with market/event part. I don't understand exactly what I'm supposed to do/how the answers should look. **Graph Map Overview**---**Introduction:**This section provides a detailed representation of changes in market models based on supply and demand. The graphs illustrate how different scenarios affect market outcomes such as price (P) and quantity (Q). Four scenarios are presented: decrease in supply, increase in demand, decrease in demand, and increase in supply.---**Graph Descriptions:**1. **Decrease Supply:** - This scenario examines the effects on the market when there is a decrease in supply. - Axes: The x-axis represents quantity (Q), while the y-axis represents price (P). - Graph shifts: The supply curve shifts leftward indicating a reduction in supply. - Expected outcomes: A decrease in supply usually leads to an increase in price and a decrease in quantity.2. **Increase Demand:** - This scenario explores the effects on the market when there is an increase in demand. - Axes: The x-axis represents quantity (Q), while the y-axis represents price (P). - Graph shifts: The demand curve shifts rightward indicating an increase in demand. - Expected outcomes: An increase in demand generally results in an increase in both price and quantity.3. **Decrease Demand:** - This scenario analyzes the effects on the market when there is a decrease in demand. - Axes: The x-axis represents quantity (Q), while the y-axis represents price (P). - Graph shifts: The demand curve shifts leftward indicating a reduction in demand. - Expected outcomes: A decrease in demand typically leads to a decrease in both price and quantity.4. **Increase Supply:** - This scenario investigates the effects on the market when there is an increase in supply. - Axes: The x-axis represents quantity (Q), while the y-axis represents price (P). - Graph shifts: The supply curve shifts rightward indicating an increase in supply. - Expected outcomes: An increase in supply generally causes a decrease in price and an increase in quantity.---By understanding these fundamental models, students can better predict market behavior and the outcomes of shifts in supply and demand. **Economics Educational Resource: DSPQ Graphing Exercise**---**Question 1: DSPQ Graphing****Instructions:**On a notebook paper, please graph the following scenarios for each market and provide an answer key.**Market and Event Scenarios:**1. **Steak:** - **Event:** Increase in consumer’s income.2. **Movies:** - **Event:** Decrease in the price of bowling.3. **Gold:** - **Event:** The price of gold is expected to rise in the near future.4. **Beer:** - **Event:** The government imposed higher taxes on producers of beer, wine, and spirits.5. **Eggs:** - **Event:** Decrease in the cost of chicken feed.6. **Autos:** - **Event:** Increase in the cost of steel.7. **Sugar:** - **Event:** Increase in the price of coffee.8. **Housing:** - **Event:** Decrease regulations on logging in U.S. forests.9. **Butter:** - **Event:** Increase the supply of margarine.10. **Oranges:** - **Event:** Frost in Florida destroys crops.**Guide to Graphing Each Scenario:**1. **Steak - Increase in consumer’s income:** - Likely to show an increase in demand for steak, shifting the demand curve to the right. 2. **Movies - Decrease in the price of bowling:** - Likely impact on the demand for movies if bowling and movies are substitutes or complements. 3. **Gold - The price of gold is expected to rise in the near future:** - Expect an increase in current demand for gold as consumers try to purchase before the price rises. 4. **Beer - Higher taxes on producers of beer, wine, and spirits:** - Likely to show an increase in the cost of production, shifting the supply curve to the left. 5. **Eggs - Decrease in the cost of chicken feed:** - Likely to show an increase in supply of eggs, shifting the supply curve to the right due to lower production costs. 6. **Autos - Increase in the cost of steel:** - Likely to show a decrease in the supply of automobiles due to higher production costs, shifting the supply curve to the left. 7

Demand of a Commodity is mainly depends upon its price, income of the consumer, price of the related…

Answered: GRAPH MAP Please graph four market…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC