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Suppose that in Zambia, people consume only two goods, peas and beans

Economics

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Suppose that in Zambia, people consume only two goods, peas and beans.Suppose that John, a citizen in that country has an income of ZMW10, the price of beans is 20N per kg and the price of peas is 40N per kg.
Suppose that John consumes 30 kg of beans. Assume that he wants to spend all his income, how many kg of peas is he going to consume?
Assume that the price of peas falls from 40N to 20N. Assuming that John still consumes 30kg of beans, find the new quantity of peas.
After the decrease in the price of peas to 20N, assume that Jonh is just as well off as he was in (a) if he has an income of ZMW7.6. However, with that income and the new price of peas he would have consumed 20 kg of beans. Find the quantity of peas he would have consumed in this case.
Find the substitution effect on consumption of peas due to the decrease in the price of peas in (c).
Find the income effect on consumption of peas due to the decrease in income in (c).


QUESTION TWO 
With the aid of a diagram, show the effect of the following changes on the equilibrium price, quantity and equilibrium point.
Market for tomatoes: Massive flood has destroyed 50% of the tomatoes on the tomato field.
Market for coca cola: Price of coca cola has gone up.
Market for bread: Consumer's income has increased and cost of production has increased.
Market for housing: increase in the number of marriages and increase in the price of construction materials.
Market for beer: Government imposes a sales tax on beer.
Market for maize: Increase in the number of maize farmers and increase in consumer taste for maize.
Market for Samsung phone: People switch to Huawei.
Market for Education: Increase in the price of school fees.
Money Market: Increase in the lending rate.
Market for DIAPERS: Increase in the number of pregnant women.