Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because cach graph indicates dfferent magnitudes for the supply and demand shifts in the market for pens. use the results of your answers an both the Scenario i and Scenario 2 grapts to complete the fallowing table. Begin by indicating the averal change in the equilbrium price and quantity after the snit in demand or supply for each shit magnitude scenaria. Then, in the final column, indicate the resulting change in the aquilbrium price and quantity when supply and demand shit in the direction you previously indicated an boch graphs. I you cannot determine the answer without knowing the magnitude of the shits, choose Cannot determine Change in Equilibrium Objects Scenarie 2 Scenario 1 When Shift Magnitudes Are Unknown Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect an the undetermined equlibrium object. O True O False
Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because cach graph indicates dfferent magnitudes for the supply and demand shifts in the market for pens. use the results of your answers an both the Scenario i and Scenario 2 grapts to complete the fallowing table. Begin by indicating the averal change in the equilbrium price and quantity after the snit in demand or supply for each shit magnitude scenaria. Then, in the final column, indicate the resulting change in the aquilbrium price and quantity when supply and demand shit in the direction you previously indicated an boch graphs. I you cannot determine the answer without knowing the magnitude of the shits, choose Cannot determine Change in Equilibrium Objects Scenarie 2 Scenario 1 When Shift Magnitudes Are Unknown Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect an the undetermined equlibrium object. O True O False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that
wasn't apparent before the shifts because cach graph indicates dfferent magnitudes for the supply and demand shifts in the market for pens.
Use the results of your answers an both the Scenario i and Scenario 2 graphs to complete the following table. Begin by indicating the overali change
in the equilbrium price and quantity after the snit in demand or supply for cach shit-magnitude scenaria. Then, in the final columm, indicate the
resulting change in the equilbrium price and quantity when supply and demand shit in the direction you previously indicated on boch graphs. Ir you
cannot determine the answer without knowing the magnitude of the shits, choose Cannot determine.
Change in Equilibrium Objects
Scenario 2
Equilibrium Object
Scenario 1
When Shift Magnitudes Are Unknown
Price
Quantity
True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect on the
undetermined equlibrium object.
O True
O False
Transcribed Image Text:Consider the market for pens. Suppose that the number of students with an allergy to penal erasers increases, causing more students to switch from
pencils to pens in schoal. Moreover, the price of plastic, an important input in pen production, has dropped considerably.
On the fallowing graat, labeied Scenario 1, indicate the effect these two events have an the demand for and supply af pens.
Note: Select and drag one or both of the curves to the desired paskion. Curves will snap into position, so if you try to move a curve and ik snaps back
to its original position, just drag it a litle farther.
Scenario 1
Susly
Derrand
Supply
Demand
10
QUANTITY (Milons of pens)
Next, complete the fallowing graph, labeled Scenario 2, by shiting the supply and demand curves in the same way that you did on the Scenario :
graph.
Scenario 2
Supply
Dermand
Susply
Demand
10
QUANTITY (Mons of pens)
(unt and uo) ORd
(Lnd nd soa) zO
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