week 2 - Assignment: Market Equilibirium Answer the...

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Assignment : Market Equilibirium Answer the following question using economic theory covered in this lesson. Make sure you answer all parts of the question. 1. For each event, illustrate the impact on the relevant market and determine what will happen to the equilibrium price and quantity in that market. (40 points – 10 points per line item) Event Market for: Show which curve shifts Equilibrium price rise or fall? Equilibrium quantity increase or decrease? Economic growth is expected to improve in the next two quarters. Aluminum Demand Rise Increase Plastics production capacity has increased. Plastics Supply Fall Decrease The Japanese government has decided to subsidize its domestic automobile producers with stimulus money. Automobil es Supply Fall Increase Manufacturers who use plastic as an input have access to cheaper plastic. Manufactur
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This note was uploaded on 03/05/2012 for the course MICRO 101 taught by Professor Seely during the Spring '12 term at Grantham.

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week 2 - Assignment: Market Equilibirium Answer the...

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