The market for oatmeal is in equilibrium at the present time. However, the future is very uncertain and farmer Nate is trying to weigh all the possibilities. Illustrate each of the following with a supply and demand graph. Make sure to label both the quantity and price.
a. A disease hits oat crops throughout the country.
b.A disease hits cows and drastically increases the price of milk.
c. Oatmeal is found to lower cholesterol.
d. Income tax rates fall sharply on consumers and oatmeal is a normal good.
e. Fertilizer costs double.
f. Cream of Wheat is beginning an all-out advertising blitz.
g. Farming as a way of life becomes popular