4. Consider the market for pie. For each of the following scenarios, do the following: a....

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4. Consider the market for pie. For each of the following scenarios, do the following: a. State which curve will shift and in which direction. b. Explain why the curve shifted. c. Indicate what will happen to the market price. (Will it increase or decrease?) d. Indicate what will happen to the equilibrium quantity. (Will it increase or decrease?) i. The price of flour rises. (We are discussing the market for pie.) ii. People decide to start eating healthier. (We are discussing the market for pie.) iii. The price of cake increases. (We are discussing the market for pie.) iv. A new bakery enters the market. (We are discussing the market for pie.) v. Consumer income rises (assume pie is a normal good). 4. Consider the market for pie. For each of the following scenarios, do the following: a. State which curve will shift and in which direction. b. Explain why the curve shifted. c. Indicate what will happen to the market price. (Will it increase or decrease?) d. Indicate what will happen to the equilibrium quantity. (Will it increase or decrease?) i. The price of flour rises. (We are discussing the market for pie.) ii. People decide to start eating healthier. (We are discussing the market for pie.) iii. The price of cake increases. (We are discussing the market for pie.) iv. A new bakery enters the market. (We are discussing the market for pie.) v. Consumer income rises (assume pie is a normal good).

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i The price of flour rises a The supply curve of pie will shift left b When the price of flour an in... View the full answer