SAPLINGPLUS ACCESS MICRO 1 TERM
4th Edition
ISBN: 9781319319038
Author: KRUGMAN
Publisher: MAC LTD
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Chapter 3, Problem 4P
To determine
To show:
In a diagram the effect on the
- The market for newspapers in your town Case 1: The salaries of journalists go up.
- The market for Seattle Seahawks cotton T-shirts Case 1: The Seahawks win the Super Bowl
- The market for bagels Case 1: People realize how fattening bagels are
- The market for the Krugman and Wells economics textbook Case 1: Your professor makes it required reading for all of his or her students.
Case 2: There is a big news event in your town, which is reported in the newspapers.
Case 2: The price of cotton increases.
Case 2: people have less time to make themselves a cooked breakfast.
Case 2: printing costs for textbooks are lowered by the use of synthetic paper.
Concept Introduction:
Demand: The demand is defined as the ability to pay for goods and services.
Supply: The supply is the ability of the seller to produce the goods and services and sell it at the prevailing price.
Equilibrium price: The equilibrium price is at which the demand and supply are equal.
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