MarketEquilibriumPractice - N o t e b o o k H a n d o u t 6...

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N o t e b o o k H a n d o u t 6© Teachers’ Curriculum Institute51 Markets, Equilibrium, and PricesAnalyze the effects of each news headline about the athletic shoe market. For each event,label the axes, demand curve, and supply curve.explain the effect of the event on the demand or supply curve for athletic shoesgraph the resulting change in equilibrium price and equilibrium quantity of athletic shoes.The first headline is completed for you..Effect of Headlines on the Athletic Shoe Market1Price of Rubber Increases DramaticallyBecause of an increase in the cost of inputs, the supply curve will decrease, or shift to the left. Equilibrium price increases. Equilibrium quantity decreases.2Movie Increases Popularity of Athletic Shoes3Price of Sport Sandals Drops Drastically4Government Sets Price Ceiling Below Equilibrium Price to Help Consumers Save Money5Two New Athletic Shoe Companies Enter the Market—Production Begins Today6Consumers Worry Price of Athletic Shoes May

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