Discussion #2 (Sept. 18, 2009)

Discussion #2 (Sept. 18, 2009) - -Determine type of...

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Shifters Demand (upward sloping) 1) Income 2) Prices of related goods 3) Tastes and preferences 4) Number of buyers Supply (downward sloping) 1) Input prices 2) Technology 3) Number of sellers Market for Coke: Average income in US goes up - The demand for Coke goes up (when it is a normal good) - Find initial equilibrium
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Unformatted text preview: -Determine type of shifter-Determine direction Technology improvement-Supply curve will shift downward. -Increases quantity and price goes down. When supply and demand curve both shifts-As quantity equilibrium increases, the change in Price equilibrium is ambiguous....
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