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Unformatted text preview: changes (demand or supply), how it changes (increase or decrease), and the effect on equilibrium price and quantity. Note that you do not have to provide graphs for these problems (but please feel free to graph out the solution if it helps you). An example is provided for you below: Example: The market for nice cars A. The price of steel used to make nice cars (a normal good) has increased. B. The general income level of the population has decreased. Answer: A. S↓: Q↓ P↑ B. D↓: Q↓ P↓ Q↓ P? 2. The market for peanut butter A. The government removes a tax from the production of peanut butter. B. The price of jelly has decreased. 3. The current market for flash drives A. Advertisements announce that flash drives will be half-price next week. B. Improvements in technology have made flash drives easier to make....
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- Fall '11
- Supply And Demand, Beefalo Meat