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  3. 4 for each problem answer the question then illustrate the...

Question: 4 for each problem answer the question then illustrate the...

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4. For each problem, answer the question then illustrate the change that will occur on the graph below. First draw the original demand line and label it d1. Then draw the new demand line and label it d2
a. The income of the Pago-Pagans declines after a typhoon hits the island. (4 marks) b. Pago-Pagan is named one of the most beautiful islands in the world and tourism to the island doubles. (4 marks) c. The price of Frisbees decreases. (Frisbees are a substitute good for boomerangs) (4 marks) d. Come up with your story about boomerangs and the Pago-Pagans. Write down the story, draw the change in demand based on the story, and explain why demand changed. (4 marks)
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