For each of the f 7.2. Comparative statics: aspartame, oil. lowing, use a supply and demand diagram to deduce the impact the event on the stated market. Would you expect the impact to primarily on price or quantity? Feel free to mention issues that y don't think are captured by a traditional supply and demand anal sis.
For each of the f 7.2. Comparative statics: aspartame, oil. lowing, use a supply and demand diagram to deduce the impact the event on the stated market. Would you expect the impact to primarily on price or quantity? Feel free to mention issues that y don't think are captured by a traditional supply and demand anal sis.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Draw a diagram, TiA .
Transcribed Image Text:For each of the fol-
7.2. Comparative statics: aspartame, oil.
lowing, use a supply and demand diagram to deduce the impact of
the event on the stated market. Would you expect the impact to be
primarily on price or quantity? Feel free to mention issues that you
don't think are captured by a traditional supply and demand analy-
sis.
(a) Event: The FDA announces that aspartame may cause
cancer. Market: Saccharin. (Note: aspartame and
saccharin are low-calorie sweeteners.)
(b) Event: Oil price increases. Market: California electricity.
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