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Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine. Equilibrium Object Price Quantity True Scenario 1 False Change in Equilibrium Objects Scenario 2 Cannot determine True or False: When both the demand and supply curves shift, the curve that shifts by the lar undetermined equilibrium object. When Shift Magnitudes Are Unknown Cannot determine Decreases Increases mines the effect on the

Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine. Equilibrium Object Price Quantity True Scenario 1 False Change in Equilibrium Objects Scenario 2 Cannot determine True or False: When both the demand and supply curves shift, the curve that shifts by the lar undetermined equilibrium object. When Shift Magnitudes Are Unknown Cannot determine Decreases Increases mines the effect on the

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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Use the results of your answers on both the Scenario 1 and Scenario graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine. Equilibrium Object Price Quantity True Scenario 1 False Change in Equilibrium Objects Scenario 2 Cannot determine True or False: When both the demand and supply curves shift, the curve that shifts by the lar undetermined equilibrium object. When Shift Magnitudes Are Unknown Cannot determine Decreases Increases mines the effect on the
Transcribed Image Text:Use the results of your answers on both the Scenario 1 and Scenario graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine. Equilibrium Object Price Quantity True Scenario 1 False Change in Equilibrium Objects Scenario 2 Cannot determine True or False: When both the demand and supply curves shift, the curve that shifts by the lar undetermined equilibrium object. When Shift Magnitudes Are Unknown Cannot determine Decreases Increases mines the effect on the
13. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students who are allergic to the rubber used pencil erasers increases, leading more students to switch from pencils to pens in school. Further, the price of ink, a major input in the pen production process, has increased sharply. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. 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 pen) 10 9 8 7 3 2 1 O 0 1 2 Scenario 1 3 Supply Demand 4 5 6 7 QUANTITY (Millions of pens) 8 9 10 Demand Supply (?)
Transcribed Image Text:13. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students who are allergic to the rubber used pencil erasers increases, leading more students to switch from pencils to pens in school. Further, the price of ink, a major input in the pen production process, has increased sharply. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. 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 pen) 10 9 8 7 3 2 1 O 0 1 2 Scenario 1 3 Supply Demand 4 5 6 7 QUANTITY (Millions of pens) 8 9 10 Demand Supply (?)
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