A reading of consumer sentiment rose in February to its highest level in three months on an improving stock market and hopes for continued job gains, according to data released Friday morning.” (Market Watch, March 1, 2013). The quote copied above refers to the income expectations of consumers in United States. Determine the effects this situation implies for the market for used books if they are considered inferior goods. That is, starting from an equilibrium situation, explain and graph the changes in the equilibrium in the market for used books. More specifically, what curve (side of the market) is affected and to what direction, and Side of the market: ___________________ Direction: __________________________ what is the change in both the equilibrium price and the equilibrium quantity. Change in equilibrium price: ________________________ Change in equilibrium quantity: ______________________ Make sure you graph the changes in the market for both price and quantity of equilibrium in the space provided below. Explain and label everything
A reading of consumer sentiment rose in February to its highest level in three months on an improving stock market and hopes for continued job gains, according to data released Friday morning.” (Market Watch, March 1, 2013). The quote copied above refers to the income expectations of consumers in United States. Determine the effects this situation implies for the market for used books if they are considered inferior goods. That is, starting from an equilibrium situation, explain and graph the changes in the equilibrium in the market for used books. More specifically, what curve (side of the market) is affected and to what direction, and Side of the market: ___________________ Direction: __________________________ what is the change in both the equilibrium price and the equilibrium quantity. Change in equilibrium price: ________________________ Change in equilibrium quantity: ______________________ Make sure you graph the changes in the market for both price and quantity of equilibrium in the space provided below. Explain and label everything
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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- “A reading of consumer sentiment rose in February to its highest level in three months on an improving stock market and hopes for continued job gains, according to data released Friday morning.” (Market Watch, March 1, 2013).
The quote copied above refers to the income expectations of consumers in United States. Determine the effects this situation implies for the market for used books if they are considered inferior goods. That is, starting from an equilibrium situation, explain and graph the changes in the equilibrium in the market for used books. More specifically,
- what curve (side of the market) is affected and to what direction, and
Side of the market: ___________________
Direction: __________________________
- what is the change in both the
equilibrium price and theequilibrium quantity .
Change in equilibrium price: ________________________
Change in equilibrium quantity: ______________________
Make sure you graph the changes in the market for both price and quantity of equilibrium in the space provided below. Explain and label everything.
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