Explain how the market demand curve for a ‘normal’ good will shift (i.e. left, right or no shift) in each of the following cases? What then will happen to the equilibrium price and quantity? Example: “demand curve shifts left, equilibrium price increases, equilibrium quantity decreases”. (a) The price of a substitute good falls Click or tap here to enter text. (b) The price of a complementary good rises Click or tap here to enter text. (c) The price of the good increases Click or tap here to enter text. (d) There is an increase in Income Click or tap here to enter text. (e) Taste increase for the good Click or tap here to enter text.
Explain how the market demand curve for a ‘normal’ good will shift (i.e. left, right or no shift) in each of the following cases? What then will happen to the equilibrium price and quantity? Example: “demand curve shifts left, equilibrium price increases, equilibrium quantity decreases”. (a) The price of a substitute good falls Click or tap here to enter text. (b) The price of a complementary good rises Click or tap here to enter text. (c) The price of the good increases Click or tap here to enter text. (d) There is an increase in Income Click or tap here to enter text. (e) Taste increase for the good Click or tap here to enter text.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explain how the market
Example: “demand curve shifts left, equilibrium price increases,
(a) The price of a substitute good falls
Click or tap here to enter text.
(b) The price of a complementary good rises
Click or tap here to enter text.
(c) The price of the good increases
Click or tap here to enter text.
(d) There is an increase in Income
Click or tap here to enter text.
(e) Taste increase for the good
Click or tap here to enter text.
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