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Unformatted text preview: Situation Supply curve shifts? Demand curve shifts? Equilibrium quantity ? Price? a no left falls falls b c d e f Quantity Price D S Quantity Price D S Quantity Price D S Quantity Price D S Quantity Price D S Quantity Price D S 3. Suppose that the supply and demand equations are given by the equations below: Demand: Q d = 16 2P Supply: Q s = 8 + 2P A. Find the equilibrium price and quantity. B. Suppose that there is an increase in income. After the change the demand curve is given by Q d = 20 2P. Find the new equilibrium price and quantity. C. What does the change in demand tell us about the good?...
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 Fall '08
 GORDANIER

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