After several years of decline, the market for handmadeacoustic guitars is making a

Chapter 2, Problem 7

(choose chapter or problem)

After several years of decline, the market for handmadeacoustic guitars is making a comeback. These guitars areusually made in small workshops employing relatively fewhighly skilled luthiers. Assess the impact on the equilibriumprice and quantity of handmade acoustic guitars as a result ofeach of the following events. In your answers, indicate whichcurve(s) shift(s) and in which direction.a. Environmentalists succeed in having the use of Brazilianrosewood banned in the United States, forcing luthiers toseek out alternative, more costly woods.b.A foreign producer reengineers the guitar-making processand floods the market with identical guitars.c. Music featuring handmade acoustic guitars makes a comebackas audiences tire of heavy metal and grunge music.d.The country goes into a deep recession and the income ofthe average American falls sharply.