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AndrewKraus AndrewKraus
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6 years ago
Using graphs, explain how the equilibrium price and quantity of laptops will change when:
a)   the demand curve for laptops shifts right and the supply curve for laptops shifts left. The shift in the demand curve is greater than the shift in the supply curve.
b)   both the demand and supply curves for laptops shift to the right by the same amount.
c)   the demand curve for laptops shifts rightward without any change in the supply curve.
Textbook 
Microeconomics

Microeconomics


Edition: 1st
Authors:
Read 79 times
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Replies
wrote...
6 years ago
a)   In the figure, the initial equilibrium is determined by the intersection of the supply curve, S1, and the demand curve, D1. The initial equilibrium price is P* and the equilibrium quantity is Q*. If the supply curve shifts to the left to S2 and the demand curve shifts to D2, the new equilibrium price is Pnew and the equilibrium quantity is Qnew. It is seen from the figure that at the new equilibrium, both the equilibrium price and quantity are higher than at the initial equilibrium.


b)   In the figure below, the initial equilibrium is determined by the intersection of the supply curve, S1, and the demand curve, D1. The initial equilibrium price is P* and the equilibrium quantity is Q*. If the supply and demand curves both shift to the right to S2 and D2, respectively, there is an increase in the equilibrium quantity of laptops but the equilibrium price remains unchanged.


c)   In the following figure, the initial equilibrium is determined at the intersection of the supply curve, S1, and the demand curve, D1. The initial equilibrium price is P* and the equilibrium quantity is Q*. If the demand curve shifts right to D2, the supply curve remaining unchanged, the market reaches a new equilibrium at a higher price Pnew and a higher quantity, Qnew.
AndrewKraus Author
wrote...
6 years ago
Needed this for my economics assignment, thanks
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