Suppose that the demand and supply for maple syrup are given by the following equations: P = 53.25 -1.25Qd (demand curve) P = 12.75 +0.25Qs (supply curve) In each case below: O Compute the new equilibrium price and quantity exchanged. O Has there been an increase/decrease in demand or supply? O An increase/decrease in the quantity supplied or demanded? O Show in a diagram the initial and new equilibrium locations. a) Improved weather conditions shift the supply curve to P = 5.25 +0.25Qs b) The income of consumers rises, which shifts the demand curve to P = 55.50 -1.25Qd