PROBLEM 7: In each problem below, you are to illustrate the market for textile with the appropriately shaped standard demand and supply curves. In each case, draw the shift in the demand and supply which result from the actions taken in the market or changes in related variables. Indicate in the space provided whether each variable and demand and supply will increase (+1. decrease (-}, remain unchanged (0), or have ambiguous sign (?). Please, number the curves so that the direction of each shift will be clear. Mark the original equilibrium by El and the final equilibrium by E2. Textile is assumed to be a normal good. The economy is in recession and income is decreasing. Demand :..(-).... Supply : .....([l). Equilibrium Quantity :. .().. .. Equilibrium Price : ......(-) 2. The government levies new sales taxes on textile and collects it from the producers. Supply : .()..... Equilibrium Quantity :.(-). .. .. P | Demand :.(U)..... | | | Equilibrium Price : .(+) ..... | |