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Unformatted text preview: Equilibrium quantity changes in the same direction Changes in BOTH demand and supply: When two events occur at the same time, work out how each event influences the market o Does it change demand or supply? o Does it increase or decrease demand or supply? o What are the new equilibrium price & quantity and how have they changed? An increase in demand shifts the demand curve & supply curve rightward. The equilibrium quantity increases but the eq. price may rise OR fall....
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This note was uploaded on 09/29/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07