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1.The term Bull market is related with stock market. So here the Brahma Bulls is such a market . The main feature of this financial market is that the prices are rising or expected to being rise. Eventhough it is mainly related to stock market the term can also be applied to anything that is traded, such as bonds, real estate, currencies and commodities. Bull markets are characterized by optimism, investor confidence and expectations that strong results should continue for an extended period of time.Bull markets take place when the economy starts strengthening.

Investors who want to benefit from a bull market should buy early in order to take advantage of rising prices and sell them when they will reach its peak. Although it is difficult to determine when the bottom and peak will take place, most losses will be minimum and are usually temporary.

In the given question the original demand and supply curves of the Brahma Bull are represented as D₀ and S₀ respectively and the new curves are represented as D₁ and S₁ respectively. The X-axis represents the quantity and the Y-axis represents the price of the particular commodity. The demand and price varies between D₀ to D₃ and P₀ to P₃ respectively. The equilibrium points( DEMAND= SUPPLY) attained are a,b,c,d.

In the first question the the movement from point a to point c represents

• At point a the demand is Q₀ and the price is P_2. and at point c the demand is Q₂ and price is P_0.These points are shown in the new demand curve D₁ which is a downward shift from D_0. Here the point a shows that the supply is on the original curve but the point c shows the supply on the new curve S₁ which is an upward shift from S₀. Thus the demand decreases and supply increases.
• At point a is in the same order as per the above answer. But at point b the demand and supply is on the original curves, where the demand is Q₁ and price is P₃ which is an increase in both.
• At point b the condition is same as per the above answer but the point d lies on the original demand curve and new supply curve, where the quantity is Q₃ and price is P₁ which is an increase in deamnd and decrease in price.
• At point c the condition is the same in the first question answer above mentioned. At point d the condition is as per the answer in the just above mentioned answer.
• At price P₂ the demand decreases from D₀ to D₁ and the supply remains the same.
• At price P₁ the demand remains the same but the supply increases from S₀ to S_1.

_2.

a)Equilibrium price P3 and equilibrium quantity Q1.

b)Equilibrium priceP2 and equilibrium quantity Qo

c)Equilibrium price P1 and equilibrium quantity Q3

d)Equilibrium price Po and equilibrium quantity Q2

3.Figure-1 in the document attached below illustrates the impact of an increase in the income tax rate on the equilibrium real GDP under the Keynesian income-expenditure model. The y and the x axes in figure-1 represent the Aggregate Expenditure(AE) and the real GDP of Y respectively. The initial AE curve is denoted as the AE1 curve and the initial equilibrium AE and Y or real GDP are denoted as AE*1 and Y*1 respectively with reference to point E*1 which corresponds to the intersection between the AE1 curve and the 45 degree line. Now, as the income tax rate increases, the disposable income of the households and the individual consumers decreases leading to a consequent reduction in the aggregate consumption expenditure on goods and services in the economy or C, holding everything else constant or unchanged and C as a component or determinant of AE. This would consequently result in a decrease in the overall or aggregate expenditure in the economy which has been depicted by a downward shift of the AE curve from its initial position or level AE1 to AE2. As a result the new equilibrium AE and Y would become AE*2 and Y*2 with reference to point E*2 which corresponds to the intersection between AE2 curve and the 45 degree line. Thus, due to the reduction in the income tax rate the equilibrium AE and real GDP consequently decrease from AE*1 to AE*2 and from Y*1 to Y*2 respectively as depicted in figure-1, in this case.

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