The supply curve shifts to the right by more than the demand curve shifts to the right. In this case, the price of marijuana will fall. If you can't visualize the shifts of the demand and supply curves for the three possibilities, draw the original demand and supply curves, then draw the shift in each curve and finally, identify the new equilibrium price.
The supply curve shifts to the right by more than the demand curve shifts to the right. In this case, the price of marijuana will fall. If you can't visualize the shifts of the demand and supply curves for the three possibilities, draw the original demand and supply curves, then draw the shift in each curve and finally, identify the new equilibrium price.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 8.6IP
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3. The supply curve shifts to the right by more than the demand curve shifts to the right. In this
case, the price of marijuana will fall.
If you can't visualize the shifts of the demand and supply curves for the three possibilities, draw
the original demand and supply curves, then draw the shift in each curve and finally, identify the new
equilibrium price .
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