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The combined effect of these shifts results in a new equilibrium price and quantity. The equilibrium quantity decreases, and the change in equilibrium price depends on the relative magnitudes of the shifts in supply and demand. Graph Illustration Below is a graph illustrating these shifts in the supply and demand curves: Original Equilibrium: The initial equilibrium is at point E₁, where the original supply curve S₁ intersects with the original demand curve D₁. New Equilibrium: The new equilibrium is at point E2, where the new supply curve S2 intersects with the new demand curve D2. The quantity of burgers has decreased, and the price has adjusted based on the relative shifts of supply and demand.

The combined effect of these shifts results in a new equilibrium price and quantity. The equilibrium quantity decreases, and the change in equilibrium price depends on the relative magnitudes of the shifts in supply and demand. Graph Illustration Below is a graph illustrating these shifts in the supply and demand curves: Original Equilibrium: The initial equilibrium is at point E₁, where the original supply curve S₁ intersects with the original demand curve D₁. New Equilibrium: The new equilibrium is at point E2, where the new supply curve S2 intersects with the new demand curve D2. The quantity of burgers has decreased, and the price has adjusted based on the relative shifts of supply and demand.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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am. 177.

The combined effect of these shifts results in a new equilibrium price and quantity. The equilibrium quantity decreases, and the change in equilibrium price depends on the relative magnitudes of the shifts in supply and demand. Graph Illustration Below is a graph illustrating these shifts in the supply and demand curves: Original Equilibrium: The initial equilibrium is at point E₁, where the original supply curve S₁ intersects with the original demand curve D₁. New Equilibrium: The new equilibrium is at point E2, where the new supply curve S2 intersects with the new demand curve D2. The quantity of burgers has decreased, and the price has adjusted based on the relative shifts of supply and demand.
Transcribed Image Text:The combined effect of these shifts results in a new equilibrium price and quantity. The equilibrium quantity decreases, and the change in equilibrium price depends on the relative magnitudes of the shifts in supply and demand. Graph Illustration Below is a graph illustrating these shifts in the supply and demand curves: Original Equilibrium: The initial equilibrium is at point E₁, where the original supply curve S₁ intersects with the original demand curve D₁. New Equilibrium: The new equilibrium is at point E2, where the new supply curve S2 intersects with the new demand curve D2. The quantity of burgers has decreased, and the price has adjusted based on the relative shifts of supply and demand.
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