13. How shifts in demand and supply affect equilibriumConsider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch frompencils to pens in school. Moreover, the price of ink, an important input in pen production, has dropped considerably.On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to movecurve and it snaps backto its original position, just drag it a little farther. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to movecurve and it snaps backto its original position, just drag it a little farther.(?)Scenario 1109SupplyDemand87SupplyDemand1.235678910QUANTITY (Millions of pens)PRICE (Dollars per pen)

In a free market, the equilibrium price and quantity is determined by the forces of demand and…

Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has dropped considerably.

Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has dropped considerably.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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