Chap003.8 - An Increase in Quantity Supplied vs. an...

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8 Chapter 3 - Supply and Demand: An Introduction Slide 43 An Increase in Quantity Supplied vs. an Increase in Supply Price ($/can) Quantity (1000s of cans/day) 5 2 3 4 1 4 10 2 6 S 06 8 S S’ S’ Increase in supply Chapter 3 - Supply and Demand: An Introduction Slide 44 The Effect on the Market for Tennis Balls of a Decline in Court Rental Fees Price ($/ball) Quantity (letters/month) 1.00 S D 40 D’ 1.40 58 Chapter 3 - Supply and Demand: An Introduction Slide 45 Effect on the Market for Overnight Delivery of a Decline in the Price of Internet Access Price ($/letter) Quantity (letters/month) P’ P Q’ Q S D D’ Chapter 3 - Supply and Demand: An Introduction Slide 46 Predicting and Explaining Changes in Prices and Quantities ± Shifts in Demand z Complements ² Two goods are complements in consumption if
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