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3. (24 points) Determine how the following shocks will affect the supply and demand curve in the following

situations.Draw a supply and demand diagram to illustrate each answer, specifying the market that you are

analyzing. Any curves that shift should be labelled appropriately so that the direction of the shift is apparent.

If no curves shift, indicate 'No Shift' beneath the diagram

1. Several new companies enter the home computer industry.
2. Consumers suddenly decide large cars are unfashionable.
3. The U.S. surgeon general issues a report that tomatoes prevent colds.
4. Frost threatens to damage the coffee crop, and consumers expect the price to rise sharply in the future.
5. The price of tea falls.What is the effect on the coffee market?
6. The price of sugar rises.What is the effect on the coffee market?
7. Tobacco lobbyists convince Congress to remove the tax paid by sellers on each carton of cigarettes sold.
8. A new type of robot is invented that will pick peaches.