2. If the demand curve for good R shifts to the left in response to a decrease in consumer incomes, what may be concluded concerning good R? Explain!

3. If, in response to an increase in the price of good K, the demand for good W increases, what can be concluded concerning the nature of the relationship between goods K and W? Explain!

4. If the demand for good G increases at the same time that the supply decreases, what will happen to the price of G and to the quantity exchanged? Explain!

5. Assume that there is a major technological advance in the production of good Y. Illustrate and explain the probable effect.

6. Given an increase in the price of good B, the supply curve for good C shifts to the right. What may be concluded concerning the nature of the relationship between goods B and C?

7. The price of good D decreases by 10%. As a consequence, consumers increase their purchases of good D. Illustrate and explain.

8. Items L and C are substitute items (relative to demand side). Now government policies substantially raise the price of L. Illustrate the effects relative to the market for C. Also, what likely will happen relative to sales of L?

9. Congress, hoping to "protect" consumers of product K place a legal ceiling on the price of the good. Explain and illustrate the impact of this price ceiling if it is placed on the product (a) at a level below equilibrium, (b) at a lev el above equilibrium.

10. A new research study comes out, reporting that if a person eats at least one dozen frog legs a day, he/she will live 20 years longer. Illustrate the probable impact, DEMAND SIDE ONLY (Many people believe the report.)

11. In a relatively small community, a military base - the town's major employer and income source - closes. Illustrate the effect in the general housing market.