Here is a type of question that you will definitely see on the exam.
To be ready, take any of these questions and just alter the conditions
(let things happen to buyers rather than sellers, make up new events
that will have the same and also opposite impact, etc.).

For each of the following situations, make a prediction about
what will happen to the equilibrium price and quantity in the market
after the policy is invoked.  Assume ``normal looking'' supply and 
demand curves, and straight-forward effects. (It will be very helpful 
if you sketch a supply and demand diagram for each situation.)


No partial credit will be given in this section.
 
In the market for roller-blades, the price of helmets goes down and
a report is released on the large number of emergency room visits due to
roller-blade injuries.
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?
 

In the cigarette market, the government will pay 
$2 to any buyer who does NOT purchase a carton (assume
buyers only demand one carton per period).
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?
 
 
In the green chile market (a spicy food item), a report is issued that ulcers are 
due to bacteria, and not diet and growing conditions in the southwest are unusually
favorable.
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?


In the market for vitamins, the government will pay $2 to the producer for
every bottle they sell.
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?
 

In the market for lobster, the producer must donate a single lobster
to a food bank for every one sold on the market
(assume that without this program, food banks would never purchase lobster
on the market). 
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?
 
 
In the market for novels (books), the cost of cable TV increases and the price
of paper increases.
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?


The government will give every purchaser of a pound of cheese an additional
pound (out of a previously obtained stockpile).
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?
 

In the market for pornography, the internet allows sellers to distribute
photographs much more cheaply and users enjoy being able to get such materials
from the privacy of their own homes.
 
Price will: increase, decrease, stay the same, can't tell?
 
Quantity will: increase, decrease, stay the same, can't tell?