The following graph plots the market for scones in Denver, where there are always over 1,000 bakeries. Suppose the municipal government, in an attempt to increase the local tax base, issues $1,000 vouchers to each household that moves to Denver. As a result, many new families move into the city. Show the effect of this change on the market for scones by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per scone) QUANTITY (Scones) Supply Demand Demand Supply (?) Now suppose Congress passes a tax cut that increases the income of Denver residents. If scones are a normal good, this will cause the demand for scones to increase

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8. Shifts in supply or demand I
The following graph plots the market for scones in Denver, where there are always over 1,000 bakeries. Suppose the municipal government, in an
attempt to increase the local tax base, issues $1,000 vouchers to each household that moves to Denver. As a result, many new families move into the
city.
Show the effect of this change on the market for scones by shifting one or both of the curves on the following graph, holding all else constant.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
PRICE (Dollars per scone)
QUANTITY (Scones)
Supply
Demand
Demand
Supply
?
Now suppose Congress passes a tax cut that increases the income of Denver residents.
If scones are a normal good, this will cause the demand for scones to increase
Transcribed Image Text:8. Shifts in supply or demand I The following graph plots the market for scones in Denver, where there are always over 1,000 bakeries. Suppose the municipal government, in an attempt to increase the local tax base, issues $1,000 vouchers to each household that moves to Denver. As a result, many new families move into the city. Show the effect of this change on the market for scones by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per scone) QUANTITY (Scones) Supply Demand Demand Supply ? Now suppose Congress passes a tax cut that increases the income of Denver residents. If scones are a normal good, this will cause the demand for scones to increase
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