Consider the Following Supply and Demand Diagram for Tootsie Rolls

question 7

Essay

Consider the following supply and demand diagram for Tootsie Rolls.Note that the market is currently in equilibrium,with a price of P* and a quantity exchanged of Q*.
For each of the scenarios below,draw a picture that illustrates the impact on price and quantity exchanged.Explain each of your pictures by describing what is happening to the demand side of the market.
(a)The American Association of Chocolate Lovers designates the Tootsie Roll as its official candy.
(b)The Tootsie Roll Company computerizes their Tootsie Roll manufacturing plant,lowering unit costs of production.

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Definitions:

Infidelity

The act of being unfaithful or violating the trust in a committed relationship or marriage through sexual or emotional relationships with someone else.

Co-Custody

A situation where two parties share legal responsibility and authority for the care and upbringing of a child.

Physical And Legal Custody

Terms that refer to the physical residence of a child and the legal right to make decisions regarding the child's upbringing, respectively.

Custody

A court-mandated ruling regarding which divorced parent will have the primary responsibility for the children’s upbringing.