Price price s1 s1 p1 p1 d1 d1 quantity q1 quantity q1

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Unformatted text preview: Price S1 S1 P1 P1 D1 D1 Quantity Q1 Quantity Q1 (c) The prices of other grains rise. (d) Rice and potatoes fall in price. Price Price S1 S1 P1 P1 D1 D1 Q1 Q1 Quantity 2 Quantity The diagram below shows the demand for and supply of gasoline. The market is initially in equilibrium at point x. There is then a shift in the demand and/or supply curves, with a resulting change in equilibrium price and quantity. To which equilibrium point (a, b, c, d, e, f, g or h) will the market move from point x after each of the following changes? S2 S0 S1 a b h Price 5. g c x d f e D1 D0 D2 Quantity The market for gasoline (a) A rise in the cost of refining gasoline........................................................................................... (b) A fall in bus and train fares........................................................................................................... (c) A fall in the price of crude oil and an increase in the price of cars. ............................................ (d...
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