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Suppose that in the above supply and demand schedule,i.e. in the "content" part of this module, due to a change in tastes and preferences, demand increases by 40 units at every price level. What would happen to equilibrium price and quantity? Has there been a shift of the demand curve or a movement along it? How about the supply curve? 2.Suppose that in the above supply and demand schedule, due to the number of suppliers, supply increases by 40 units at every price level. What happens to equilibrium price and quantity? Has there been a shift of the supply curve or a movement along it? How about the demand curve? 3.Suppose that in the above supply and demand curve, due to a change in income demand decreases by 20 units at each price level and due to a decrease in the costs of factors in production, supply increases by 20 units at each price level. What happens to equilibrium price and quantity? 4. In an attempt to curb the illegal use of drugs such as marijuana, or the use of harmful legal substances such as tobacco, governments can use two basic options: decreasing demand through public education and decreasing supply through legal restrictions or taxes. Which of these two types of policies is likely to have more long-term success? Why?

ECON1034 Introduce to economic

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