Economics_AppendixC - Appendix C Answer the following...

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Appendix C Answer the following questions. 1. If the price of a good increases, what happens to demand? The demand is decreased 2. If the price of a good decreases, what happens to supply? Then the demand is great and more consumers buy all they can 3. Does a change in price create curve shifts? Explain. Yes, as a consumer myself I would see it as an opportunity to stock up my pantry. Price is very important and it does create curve shifts. The fewer products available the price goes up. The more product is available the price goes down. Complete the following matrix. An example is provided. Event Market affected by event Shift in supply, demand, or both. Explain your answer. Change in equilibrium Frozen orange crops in California Orange juice Supply (left)—Not as many available oranges to offer consumers. Price will increase and quantity will decrease . Hurricanes in the Gulf Coast Gulf Coast tourism Demand-Tourism-less tourist go on vacation or not at all Price will increase and less tourism
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This note was uploaded on 09/11/2011 for the course ECO 205 taught by Professor T.r.b. during the Spring '08 term at University of Arizona- Tucson.

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Economics_AppendixC - Appendix C Answer the following...

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