With the aid of appropriate diagrams, explain the effects on equilibrium price and quantity of i)coffee if there has been failure in the harvest of coffee ii) holidays if there has been an increase in consumer's income. b) explain and illustrate the following using diagrams i) market equilibrium ii) market disequilibrium 3.a. A 20% increase in the price of milk leads to a 10% reduction in the quantity of milk demanded. What is the price elasticity of demand for milk? b)suppose a grocery store normally sells a 100 cartons of milk per day and the price elasticity of demand is 1.7. If the store lowers the price of milk by 10%,about how many cartons of milk will it then sell per week. Show clear workings

Use the four-step process to analyze the impact of a Deduction in tariffs on imports of iPods on the equilibrium price and quantity of Sony Walkman-type products.

Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.