How markets allocate resources. Derived demand is the change in demand due to a result initiated in another market. Market changes affect the demand for resources in related markets. For the following scenario, you are given a list of products. Draw a supply and demand graph illustrating the effect. Make sure to show the equilibrium price and quantity before and after the change. Assume that there is a heavy frost that destroys half of Brazil’s coffee crop and that people drink more cream in their coffee rather than tea. Illustrate the effect of this on the demand for: Coffee, Tea, Cream and Automatic Coffee Makers