The Following Events Occur Simultaneously:
(I) the Price of Beef $P _ { 0 }$

Essay

The following events occur simultaneously:
(i) The price of beef rises (beef and leather both come from cows).
(ii) The price of alligator hides increases.
b. Draw a demand-and-supply graph showing equilibrium in the market for leather before the two events described above. Label the axes and curves. Label the initial equilibrium - before events (i) and (ii)- as $P _ { 0 }$ and $Q _ { 0 }$ on your graph.
c. Now show on your graph how event (i) affects the demand or supply curves for leather. Briefly explain which of the demand or supply variables caused the effect you are showing on your graph.
d. Now show on your graph how event (ii) affects the demand or supply curves for leather. Briefly explain which of the demand or supply variables caused the effect you are showing on your graph.
e. Based on your graphic analysis, what do you predict will happen to the equilibrium price of leather? The equilibrium quantity of leather?