1. Does an increase in average income cause a shift of the demand curve for coffee or a movement along the demand curve?
2. The estimated supply function for avocados is Q = 58 + 15p - 20_pf, where pf is the price of fertilizer. Determine how much the supply curve for avocados shifts if the price of fertilizer rises by $1.10 per Ib. Calculate the effect of a change in pf on Q and explain this shift.
3. Using the demand function, Equation 2.2, Q = 8.56 - p - 0.3ps + 0.1Y, and the supply function, Equation 2.5, Q = 9.6 + 0.5p - 0.2p, for coffee determine the equilibrium price and quantity of coffee if Y = $55,000, p_s = 0.20, and pc = $5. Determine equilibrium quantity and Draw the demand and supply curves and illustrate this equilibrium in a diagram.

4 President Trump introduced several policy measures designed to curb immigration. Use a supply-and-demand diagram to illustrate the effect of such policies on wages and employment if the policies shift the labor supply curve to the left but have no effect on the labor demand curve.