eco205_appendix_c - Axia College Material Appendix C Answer...

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Axia College Material Appendix C Answer the following questions. 1. If the price of a good increases, what happens to demand? The demand will decrease in goods increase. 2. If the price of a good decreases, what happens to supply? Supplies would increase if goods decrease. 3. Does a change in price create curve shifts? Explain. The change in price will create a curve in shifts because it changes the markets equilibrium. Complete the following matrix. An example is provided. Event Market affected by event Shift in supply, demand, or both. Explain your answer. Change in equilibrium Frozen orange crops in California Orange juice Supply (left)—Not as many available oranges to offer consumers. Price will increase and quantity will decrease. Hurricanes in the Gulf Coast Gulf Coast tourism Both because their would be no one to visit and there would be a loss of income to the tourism business There will be a shortage because the prices would increase the quantity decreased Price of hot dogs
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This note was uploaded on 05/10/2009 for the course ECONOMICS 205 taught by Professor Janysek during the Spring '09 term at University of Phoenix.

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eco205_appendix_c - Axia College Material Appendix C Answer...

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