For each event listed below, indicate whether it affects the demand or supply of battery-operated dancing flow ers and the direction (increase or decrease) of the change.

Also indicate what will happen to equilibrium price and quantity. Remember, the determinants of demand are income, tastes, prices of related goods or services, consu mers’ expectations, and the number of buyers. The deter minants of supply are prices of resources, changes in technology or productivity, producers’ expectations, number of producers, and prices of related goods or ser vices (goods that are substitutes or complements in production).

a. There is a change in tastes toward battery-operated dancing gorillas.

b. The price of plastic falls.

c. A technological breakthrough makes it cheaper to produce plastic flowers.

d. Consumers’ incomes rise.

e. The price of battery-operated dancing gorillas rises.

f. The price of plastic for making flowers skyrockets.

g. A fire destroys a major production facility for danc ing flowers.

h. Consumers expect lower prices for dancing flowers in the future.

Demand Supply Price Quantity