c. Suppose a price floor of $3.00 is imposed on the market for snickers chocolate bars, what effect will this have on the market for snickers chocolate bars? Use calculations to support your answer. d. Suppose there is an increase in demand and 3400 300 D Q P = − . Compute the new equilibrium price and quantity. What is the quantity supplied of snickers chocolate bars at this new equilibrium? 3. A common feature of skiing is waiting in lift lines. Does waiting in lift lines imply that price is not effectively allocating the scarce resource? If it is not, what would you recommend? 4. Use supply and demand diagrams and verbal explanations to show the effect of the following events on the market for sweatshirts: a. A hurricane in Florida damages the cotton crop. b. The price of leather jackets declines.