Determinants of demand or supply

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Reference no: EM131069615

For each of the event listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity.

1) Consider market for grape jelly. Peanut butter and grape jelly are complements. Severe mold destroyed half of the next year's peanut harvest.

2) Consider the auto market. Automakers opened foreign assembly plants after discovering that competent foreign workers are willing to work for lower wages.

3) Consider the market for chocolate bars. There is a rise in the price of cocoa beans.

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