This preview shows page 1. Sign up to view the full content.
Unformatted text preview: price of peanuts causes an increase in the demand for L-L. Item I shifts the demand curve to the right. Item II shifts the supply curve to the left. Item III shifts the demand curve to the left (the opposite of item I). If all events happen, price change is indeterminate, but depends on the sizes of the changes. If I and II happen, then quantity is indeterminate, but depends on the sizes of the changes....
View Full Document
- Spring '07