The maple-syrup production industry was severely affected by a devastating ice storm in January 1998 . Quebec, which produces 75 percent of the world's maple syrup, and northern Vermont and western Maine suffered catastrophic damage to their maple

trees. These trees will take years to recover. Explain how this storm will affect each of the following markets: a . maple syrup market b. market for Hungry Jack brand breakfast syrup (a corn syrup based product substitute) c. market for Sue Bee brand honey d. market for Eggo brand waffles

a . The supply curve of maple syrup decreases (shifts to the left), leading to a higher price and fewer units
traded
b. The demand curve for Hungry Jack syrup increases (shifts to the right) (Hungry Jack syrup is a
substitute for maple syrup), leading to a higher price and more units traded.
c. The demand curve for Sue Bee honey shifts to the right (Sue Bee honey is a substitute for maple
syrup), leading to a higher price and more units traded.
d. The demand curve for Eggo waffles shifts to the left (waffles and maple syrup are complements),
leading to a lower price and fewer units traded.