Using a graph, illustrate each of the following situations. Your graph should show an initial supply and demand curve, and it should also show the correct shift of either the Demand or Supply curve. You should also indicate for each situation what will happen to the equilibrium price and quantity of the good. A) Peaches and plums are substitutes. The price of peaches falls. Illustrate the market for plums. B) Wheat is used to make bread. Suppose the price of wheat increases. Illustrate the market for bread.

Q&A Education