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Unformatted text preview: 7. Using supply and demand diagrams, show the effect of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop b. The price of leather jackets falls d. New knitting machines are invented 10 The market for Pizza has the following demand supply schedules: Price Quantity Demanded Quantity Supplied $4 135 pizzas 26 pizzas $5 104 53 $6 81 81 $7 68 98 $8 53 110 $9 39 121 Graph the demand and supply curves. What is the equilibrium price and quantity in this market? If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?...
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This note was uploaded on 09/15/2009 for the course ECON 201 taught by Professor Shoonlai during the Summer '09 term at Miami University.
- Summer '09