F.4 econ ( market price)

a) Both the demand curve and supply curves will shift downwards, i.e., decrease in both demand and supply in order not to be punished by the government, the market price will undoubtedly fall.
b) The demand curve will shift upwards because all the people will buy legal computer software and in short-term, supply curve can not increase to cope with this increase in demand, market price will rise.