2. The diagram below shows the market for umbrellas in its equilibrium. But suppose that a) the weather changes so that it is exceptionally rainy, increasing demand for umbrellas, and b) a new technology in nylon production makes it easier to produce umbrellas, increasing supply. Try and draw new Supply and Demand curves on the figure in which at the new equilibrium 700 umbrellas are sold at a price of 30. Price 50 40 30 20 10 0 100 200 300 400 500 009 700 008 Quantity per day. Umbrellas 900 1,000
2. The diagram below shows the market for umbrellas in its equilibrium. But suppose that a) the weather changes so that it is exceptionally rainy, increasing demand for umbrellas, and b) a new technology in nylon production makes it easier to produce umbrellas, increasing supply. Try and draw new Supply and Demand curves on the figure in which at the new equilibrium 700 umbrellas are sold at a price of 30. Price 50 40 30 20 10 0 100 200 300 400 500 009 700 008 Quantity per day. Umbrellas 900 1,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2. The diagram below shows the market for umbrellas in its equilibrium. But suppose that a) the
weather changes so that it is exceptionally rainy, increasing demand for umbrellas, and b) a new
technology in nylon production makes it easier to produce umbrellas, increasing supply. Try and
draw new Supply and Demand curves on the figure in which at the new equilibrium 700 umbrellas
are sold at a price of 30.
Price
50
40
30
20
10
0
0
100
200
300
400
500
Quantity per day. Umbrellas
006
1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F696d38cd-963d-415c-83b1-46a2700ebc8d%2F0f924a26-f939-4f8e-8481-ab15c293a63c%2Froy983r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. The diagram below shows the market for umbrellas in its equilibrium. But suppose that a) the
weather changes so that it is exceptionally rainy, increasing demand for umbrellas, and b) a new
technology in nylon production makes it easier to produce umbrellas, increasing supply. Try and
draw new Supply and Demand curves on the figure in which at the new equilibrium 700 umbrellas
are sold at a price of 30.
Price
50
40
30
20
10
0
0
100
200
300
400
500
Quantity per day. Umbrellas
006
1,000
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