Demonstrate the effect on price and quantity of each of the following events: a. In a recent popularity test, Elmo topped Cookie Monster in popularity (Cookie Monster's popularity is directly correlated to the popularity of cookies). Market: cookies. Instructions: Draw a parallel shift in the demand or supply curve(s) by grabbing, dragging, and then dropping the curve(s) to the new position(s). In the cookie market, equilibrium price will and equilibrium quantity will . b. The Atkins Diet that limits carbohydrates was reported to be very effective. Market: high carbohydrate bread. Instructions: Draw a parallel shift in the demand or supply curve(s) by grabbing, dragging, and then dropping the curve(s) to the new position(s). In the high carbohydrate bread market, equilibrium price will and equilibrium quantity will .

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.