D_SShftrPS - Economics 2 Intro Microeconomics PRACTICE...

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Economics 2 Dr. Kurre Intro Microeconomics Penn State-Erie PRACTICE PROBLEM FOR SUPPLY AND DEMAND SHIFTERS For each problem below, determine the initial effect on the market of the event(s) described. For each case, start with a simple graph (be sure to label the axes) showing a demand curve and a supply curve and the initial equilibrium position in the market. Then draw in new supply and/or demand curves, as appropriate for each problem, to show how the equilibrium price and quantity will change. To help you understand the difference between a shift of a curve and a movement along it, fill in the table below. Remember, if there is a shift of the demand curve, that is a "change in demand." ("Demand" refers to the whole relationship/curve.) If there is a movement along the demand curve, that is a "change in quantity demanded." (There are a large number of "quantities demanded" along each demand curve.) Only one thing causes a "change in quantity demanded." (What is it? Is the same true for "quantity supplied?") 1.
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D_SShftrPS - Economics 2 Intro Microeconomics PRACTICE...

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