Assignment 2 The purpose of this assignment is to improve your skills of analyzing how prices and quantities change in the market as a result of some shocks. A) Use the demand and supply curves to analyze the effects of each event on the equilibrium price and quantity of Palestinian building stone products. Explain your answer. Event 1: A technological advance allows the stone to be produced at lower cost. Event 2: The price of imported stone increased. Event 3: The government imposes new taxes on the imported stone. Event 4: Events A and B both occur. Note: The increase in the price of imported stone is large. B) Assume that the equilibrium price for building stone in Palestine is P and the equilibrium quantity is Q. Using demand and supply curves to determine the new equilibrium price and equilibrium quantity in each of the following cases: 1- Suppose the Government pays subsidy to stone producers. 2- Suppose that the price of electricity, which is used in production, increases as and at the same time demand for houses increase. 3- The Israeli government confiscated () many quarries in the West Bank, while the number of population rises. 4- Suppose that the cost of producing stone in Palestine has decreased as a result of an improvement in production technology, and the price of imported stone from Turkey and Italy has decreased. Note: the technology effect is larger. 5- Palestinian Government banned imports of building stone from foreign countries. Assignment 2 The purpose of this assignment is to improve your skills of analyzing how prices and quantities change in the market as a result of some shocks. A) Use the demand and supply curves to analyze the effects of each event on the equilibrium price and quantity of Palestinian building stone products. Explain your answer. Event 1: A technological advance allows the stone to be produced at lower cost. Event 2: The price of imported stone increased. Event 3: The government imposes new taxes on the imported stone. Event 4: Events A and B both occur. Note: The increase in the price of imported stone is large. B) Assume that the equilibrium price for building stone in Palestine is P and the equilibrium quantity is Q. Using demand and supply curves to determine the new equilibrium price and equilibrium quantity in each of the following cases: 1- Suppose the Government pays subsidy to stone producers. 2- Suppose that the price of electricity, which is used in production, increases as and at the same time demand for houses increase. 3- The Israeli government confiscated () many quarries in the West Bank, while the number of population rises. 4- Suppose that the cost of producing stone in Palestine has decreased as a result of an improvement in production technology, and the price of imported stone from Turkey and Italy has decreased. Note: the technology effect is larger. 5- Palestinian Government banned imports of building stone from foreign countries