Please read the instructions carefully and complete the following two problems. Your solutions should be hand-written and neatly presented. You are expected to submit a PDF scan of your hand-written work. Please ensure all your workings are clear and legible. Problem 1: Changes in Market Equilibrium Consider the market for smartphones. Recently, a groundbreaking study has been released showing that smartphone usage can actually make consumers smarter and increase their IQ. 1. Draw and label the initial demand and supply curves for smartphones. 2. Based on the effects of this study, predict and represent the changes in the market for smartphones. Draw the new equilibrium on your graph. 3. Explain the changes you have made to the graph and how the new equilibrium is reached. Remember to clearly label your axes, curves, and equilibrium points. Problem 2: Shift in Market Equilibrium Consider the market for coffee beans. A widespread coffee rust disease has hit major coffee producing countries causing a decline in the production of coffee beans. 1. Draw and label the initial demand and supply curves for coffee beans. 2. Represent how this disease outbreak would affect the coffee beans market. Draw the new equilibrium on your graph. 3. Discuss the changes you have made to the graph and how the new equilibrium is reached. Remember to clearly label your axes, curves, and equilibrium points