For the scenarios discussed below, use supply and demand curves and a graph to analyze what will happen to both price and quantity in equilibrium given the information available below. Graphs MUST be half a page each. When it is impossible to pin down the direction of the effect, discuss what is more likely in your opinion and why. Make sure to differentiate between movements of curves and movements on curves. For example, you could say something like this: “the supply curve moves to the right. As a result, price decreases, and quantity supplied (and demanded) in equilibrium increases”.
Get Answers For Free
Most questions answered within 1 hours.