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Macroeconomics Walker was shopping for a new video game and noticed that two video game shops...

Macroeconomics

Walker was shopping for a new video game and noticed that two video game shops in his area closed when he was comparison shopping. Draw a graph labeling both axis of the demand and supply curves and the change that occurs.

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Answer #1

There is a decrease in supply leading to leftward shift of supply curve in market for video games. This causes increase in equilibrium price and decrease in equilibrium quantity. The graph is shown as below:

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