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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 O True Scenario 1 False Change in Equilibrium Objects Scenario 2 True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object. When Shift Magnitudes Are Unknown

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 O True Scenario 1 False Change in Equilibrium Objects Scenario 2 True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object. When Shift Magnitudes Are Unknown

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 I and Scenario 2 graphs to compiete the following tabie. Begin by Indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenano. Then, in the final column, indicate the resulting change in the equilbrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot detemine the answer without knowing the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 2 Equilibrium Object Scenarlo 1 When Shift Magnitudes Are Unknown Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object. O True O False
Transcribed Image Text:Use the results of your answers on both the Scenario I and Scenario 2 graphs to compiete the following tabie. Begin by Indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenano. Then, in the final column, indicate the resulting change in the equilbrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot detemine the answer without knowing the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 2 Equilibrium Object Scenarlo 1 When Shift Magnitudes Are Unknown Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object. O True O False
Consider the market for pens. Suppose that increased medical ooncems over lead pencils have led schools to steer away from pencil use in favor of pers. Moreover, the price of ink, an important input in pen production, has increased considerably. On the following graph, labeied Scenario 1, indicate the effect these two events have an 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 ik snaps back to its original position, just drag it a little farther. Scenarie t 10 Suppy Derrand Supply Damand •1 2 1 s 7 1o QUANTITY (Mos of pers) Next, complete the falowing graph, labeled Scenario 2, by shiting the supply and demand curves in the same way that you did on the Scenario : graph. Scenarie 2 13 -O- Suppy Dermand Aens Damand 10 QUANTITY (MIions of pers) Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens. (ued d suogl aanid (und ad sunoal onid
Transcribed Image Text:Consider the market for pens. Suppose that increased medical ooncems over lead pencils have led schools to steer away from pencil use in favor of pers. Moreover, the price of ink, an important input in pen production, has increased considerably. On the following graph, labeied Scenario 1, indicate the effect these two events have an 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 ik snaps back to its original position, just drag it a little farther. Scenarie t 10 Suppy Derrand Supply Damand •1 2 1 s 7 1o QUANTITY (Mos of pers) Next, complete the falowing graph, labeled Scenario 2, by shiting the supply and demand curves in the same way that you did on the Scenario : graph. Scenarie 2 13 -O- Suppy Dermand Aens Damand 10 QUANTITY (MIions of pers) Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens. (ued d suogl aanid (und ad sunoal onid
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