3. The demand for onions is very inelastic. Draw a supply/demand diagram that shows how the equilibrium price and quantity will change when a drought reduces supply. Label the axes and the prices and quantities both before and after the supply change. Then, write a few sentences explaining what happened to prices relative to quantities and why.

3. The demand for onions is very inelastic. Draw a supply/demand diagram that shows how the equilibrium price and quantity will change when a drought reduces supply. Label the axes and the prices and quantities both before and after the supply change. Then, write a few sentences explaining what happened to prices relative to quantities and why.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 25RQ: How does one analyze a market where both demand and supply shift?

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