In a diagram the effect on the demand curve, the supply curve, the equilibrium price , and the equilibrium quantity in the given situations. The market for newspapers in your town Case 1: The salaries of journalists go up. Case 2: There is a big news event in your town, which is reported in the newspapers. The market for Seattle Seahawks cotton T-shirts Case 1: The Seahawks win the Super Bowl Case 2: The price of cotton increases. The market for bagels Case 1: People realize how fattening bagels are Case 2: people have less time to make themselves a cooked breakfast. 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: 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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Chapter 3, Problem 4P

To determine

To show:

In a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity in the given situations.

The market for newspapers in your town
Case 1: The salaries of journalists go up.
Case 2: There is a big news event in your town, which is reported in the newspapers.

The market for Seattle Seahawks cotton T-shirts
Case 1: The Seahawks win the Super Bowl
Case 2: The price of cotton increases.

The market for bagels
Case 1: People realize how fattening bagels are
Case 2: people have less time to make themselves a cooked breakfast.

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: 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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