Chap003.10 - The Effect of Technical Change on the Market...

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10 Chapter 3 - Supply and Demand: An Introduction Slide 55 The Effect of the Increase in the Population of Potential Buyers Price Housing NY City (units per month) P Q S D P’ Q’ D’ D’ = demand after increase in population Chapter 3 - Supply and Demand: An Introduction Slide 56 The Effect on the Skateboard Market of an Increase in the Price of Fiberglass Price ($/skateboard) Quantity (skateboards/month) 60 1000 S D 80 800 S’ Chapter 3 - Supply and Demand: An Introduction Slide 57 The Effect on the Market for New Houses of a Decline in Carpenters’ Wage Rates Price ($1000/house) Quantity (houses/month) 120 40 D S 90 50 S’ Chapter 3 - Supply and Demand: An Introduction Slide 58
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Unformatted text preview: The Effect of Technical Change on the Market for the Term Paper Revisions Price ($/revision) Quantity (millions of revisions per year) 55 12 D S 7.50 36 S Chapter 3 - Supply and Demand: An Introduction Slide 59 Predicting and Explaining Changes in Prices and Quantities Other determinants of supply z Weather z Expectations z Number of sellers Chapter 3 - Supply and Demand: An Introduction Slide 60 Price Quantity P P Q Q S D D An increase in demand will lead to an increase in both the equilibrium price and quantity Four Rules Governing the Effects of Supply and Demand Shifts: I...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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