Chapter 3, Problem 3SCQ

In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction.

1. There have recently been some important cost-saving inventions in the technology for making paint.
2. Paint is lasting longer so that property owners need not repaint as often.
3. Because of severe hailstorms, many people need to repaint now.
4. The hailstorms damaged several factories that make paint, forcing them to close down for several months.