And the weirdest online macroeconomics question this week goes too.
[spoiler]It is the distant future. The market leader in pets for young children is the iLemur, the cutest creature ever devised. After decades of war involving lengthy battles using heavily armored walking tanks (HA-WTs), peace breaks out as Defense Secretaries succumb to the contagious cuteness and refuse to wage battles.
Producers of HA-WTs then realize that psychotherapy can change HA-WTs into household pets. Now called 'Huggably Adorable Walking Tanks', they quickly challenge the market dominance of iLemurs. Not to be deterred, iLemur inventor Jeeve Stubbs devises a new iLemur cloning technology that allows for legions of iLemurs to be created at an extremely low cost.
The graph below shows the market of iLemurs. Shift the graph and answer the two questions to show the effects of both the new competition from HA-WTs as well as the new iLemur cloning technology.[/spoiler]