The following graph shows the market for cereal in Chicago, where there are over 1,000 stores that sell cereal at any given moment. Suppose the Surgeon General issues a public statement saying that consuming cereal is good for your health. Show the effect of this change on the market for cereal 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. Supply Demand Supply Demand QUANTITY (Boxes) Now suppose Congress passes a tax cut that increases the income of Chicago residents. If cereal is a normal good, this will cause the demand for cereal to PRICE (Dollars per box)

The following graph shows the market for cereal in Chicago, where there are over 1,000 stores that sell cereal at any given moment. Suppose the Surgeon General issues a public statement saying that consuming cereal is good for your health. Show the effect of this change on the market for cereal 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. Supply Demand Supply Demand QUANTITY (Boxes) Now suppose Congress passes a tax cut that increases the income of Chicago residents. If cereal is a normal good, this will cause the demand for cereal to PRICE (Dollars per box)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please make it as clear as possible

8. Shifts in supply or demand I
The following graph shows the market for cereal in Chicago, where there are over 1,000 stores that sell cereal at any given moment. Suppose the
Surgeon General issues a public statement saying that consuming cereal is good for your health.
Show the effect of this change on the market for cereal 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.
Supply
Demand
Supply
Demand
QUANTITY (Boxes)
Now suppose Congress passes a tax cut that increases the income of Chicago residents.
If cereal is a normal good, this will cause the demand for cereal to
PRICE (Dollars per box)

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