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Question 1.  Draw a supply-and-demand graph for cotton sweatshirts to show the effect of a hurricane in...

Question 1.  Draw a supply-and-demand graph for cotton sweatshirts to show the effect of a hurricane in South Carolina that damages the cotton crop. Does this result in a supply shift, demand shift, or both? Why? What happens to equilibrium price and quantity?

Question 2.  A technological advance reduces the cost of manufacturing smart phones.  Draw a supply and demand graph to show what happens to the market for smart phone cases (not smart phones). (Hint: Consider whether smart phones and smart phone cases are substitutes, complements, or neither.) For smart phone cases, does this result in a supply shift, demand shift, or both? Why? What happens to equilibrium price and quantity?

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