Ch3Notes - quantity o An increase in supply will lead to a...

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Predicting and Explaining Changes in Prices and Quantities o Change in Quantity Demanded is different from Change in Quantity Complementary goods and Substitute goods Normal and Inferior goods Four simples rules regarding changes to supply and demand (page 80) o An increase in demand will lead to an increase in both the equilibrium price and quantity o A decrease in demand will lead to a decrease in both the equilibrium price and
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Unformatted text preview: quantity o An increase in supply will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity o A decrease in supply will lead to an increase in the equilibrium price and a decrease in the equilibrium quantity Social welfare the sum of the economic surplus achieved by buyers and sellers of a good....
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