1.Market Effects of Increased Income. Consider the market for restaurant meals. Use a demand and supply graph to predict the market effects of an increase in consumer income. Arrow up or down: The...

1.Market Effects of Increased Income. Consider the market for restaurant meals. Use a demand and supply graph to predict the market effects of an increase in consumer income. Arrow up or down: The equilibrium price of restaurant meals will __________, and the equilibrium quantity of restaurant meals will __________.

2. Latte Consumption: In October, the price of a cup of latte was $2.50 and 400 cups of lattes were consumed. In November, the price of a cup of latte was $2.00 and 300 cups of lattes were consumed. What might have caused this change?

3. Gas Prices and New Gas Guzzlers. Use a demand and supply graph to predict the implications for the market for new full-size SUVs. Arrow up or down: The equilibrium price of a full-size SUV will __________, and the equilibrium quantity will __________.