If demand and supply change in the same direction, we equilibrium quantity and we the direction of change of the the direction of change of the equilibrium price. OA cannot predict cannot predict OB. can predict; can predict OC. cannot predict; can predict OD. can predict cannot predict CLLD
If demand and supply change in the same direction, we equilibrium quantity and we the direction of change of the the direction of change of the equilibrium price. OA cannot predict cannot predict OB. can predict; can predict OC. cannot predict; can predict OD. can predict cannot predict CLLD
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

Transcribed Image Text:The graph shows the market for computers.
Draw a point at the market equilibrium. Label it 1.
Draw a demand curve that shows what happens if the price of a printer falls. Label the curve D..
Draw a supply curve that shows the effect of a technological advance that cuts the cost of
producing computers. Label it S..
Draw a point at the new market equilibrium. Label it 2.
If demand and supply change in the same direction, we
equilibrium quantity and we
the direction of change of the
the direction of change of the equilibrium price.
OA cannot predict cannot predict
OB. can predict; can predict
OC. cannot predict, can predict
OD. can predict cannot predict
2500-
2000+
1500-
1000-
500-
Price (dollars per computer)
04
35
Pa
Quantity (millions of computers per year
>>> Draw only the objects specified in the question
Q
G
Question
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