Draw the following story on 1 graph:
Imagine that last week the newspaper headline was:
1. A new technology has substantially improved the jam making process.
2. The price of peanut butter, complementary good to jam, has fallen by 20%.
First draw the original supply and demand curves for jam, and show the equilibrium price and quantity. Then add the Ëœheadlines” to it. What happened to equilibrium quantity and price in your graph? Label your graphs. You may draw your graph freehand, take a picture of it and attach.