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demand curve shifts to the right by more than the supply curve shifts to the right. In this case, the price of marijuana will

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 4MC

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The demand curve shifts to the right by more than the supply curve shifts to the right. In this case, the price of marijuana will rise. ( Try to visualize the demand curve shifting to the right by more than the supply curve shifting to the right. Can you see the higher price on the vertical axis?)

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