b) Explain using appropriate diagrams the effect on:

i) the demand curve for pedelecs (electric bicycles) following the provision of a grant by the Government on the purchase price to customers; and

ii) the supply curve of pedelecs following technological improvements in pedelec production plants.

c) Explain and demonstrate graphically:

i) the effect of an increase in the price of Adidas sportswear on the equilibrium price and quantity of Nike sportswear (both are substitute brands); and

ii) the effect of an increase in the price of paper on the production of books.