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Unformatted text preview: these weekends as there are on any other weekend, the supply of rooms stays constant. Therefore Demand increases or shifts right and supply stays the same therefore increasing the price during parent’s weekend and graduation weekend. 3.13. The equilibrium price of apples will increase due to the inverse relationship of both the supply and demand curve. 3.15. The demand-supply model predicts that the quantity of tofu sold in the U.S. has increases from then to now. However both the demand and supply curves have moved in similar directions therefore you cannot tell what equilibrium price will do. Whether it will increase or decrease, it will be impossible to know without additional information....
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This note was uploaded on 03/31/2008 for the course ECON 06E:001:SC taught by Professor Nealolitsky during the Spring '08 term at University of Iowa.
- Spring '08