Scenario: Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and they rose dramatically. As a result, the quantity demanded for bread dramatically fell and the quantity supplied for supplied rose sharply. Change in Demand * Increase Decrease Did not Change O Indeterminate Change in Supply * Decrease Did not Change O Indeterminate Graph * So So Do Do B O B So So Do D Q D D P So So Do D, Do E F S1 So So Do Do G H G O H So Do Do Q Q So Do D1 -Q K K Change in market equilibrium price. * Increase Decrease Did not Change Indeterminate Change in market equilibrium quantity. * Increase Decrease Did not Change Indeterminate O O O O
Scenario: Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and they rose dramatically. As a result, the quantity demanded for bread dramatically fell and the quantity supplied for supplied rose sharply. Change in Demand * Increase Decrease Did not Change O Indeterminate Change in Supply * Decrease Did not Change O Indeterminate Graph * So So Do Do B O B So So Do D Q D D P So So Do D, Do E F S1 So So Do Do G H G O H So Do Do Q Q So Do D1 -Q K K Change in market equilibrium price. * Increase Decrease Did not Change Indeterminate Change in market equilibrium quantity. * Increase Decrease Did not Change Indeterminate O O O O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:For each of the following events described, indicate the effects to the demand and to the supply. Use the
demand and supply graphs provided below to match these events. Then determine what happens to the
market equilibrium price and equilibrium quantity.
Scenario: Before economic reforms were implemented in the countries of
Eastern Europe, regulation held the price of bread substantially below
equilibrium. When reforms were implemented, prices were deregulated and
they rose dramatically. As a result, the quantity demanded for bread
dramatically fell and the quantity supplied for supplied rose sharply.
Change in Demand *
Increase
Decrease
Did not Change
Indeterminate
Change in Supply *
Increase
Decrease
Did not Change
Indeterminate
Graph *
So
D:
Do
Do
A
В
O A
В
So
So
Do
Do
Q
D
O c
O D
P
So
So
Do
D-
E
F
O E
F
P
S.
So
So
Do
Do
G
H
So
P
So
D1
Do
Do
D1
Q
-Q
J
J
S:
So
Do
O K
Change in market equilibrium price. *
Increase
Decrease
Did not Change
O Indeterminate
Change in market equilibrium quantity. *
Increase
Decrease
Did not Change
O Indeterminate
O O O O
O O O
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