1. Explain what would happen in the following markets given the following demand or supply shocks. In your answer clearly state what happened to supply or demand (whether it increased or decreased) and what would likely happen to the equilibrium price and quantity as a result, other factors constant.

A.) Market: Grapes. Shock: A major scientific study suggests that individuals who regularly consume grapes live on average five years longer and have a reduced risk of Alzheimer's disease.

B.) Market: Electric vehicles. Shock: There is a significant decrease in the price of U.S. semiconductors, which are used as an input in the production of electric vehicles.

C.) Market: Used cars. Shock: There is a significant decrease in the price of new cars, which are a substitute of used cars.

D.) Market: Eggs. Shock: The avian flu leads to a significant reduction in the number of egg laying hens.

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A Market Grapes Shock A major scientific study suggests that individuals who regularly consume grape... View the full answer