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1.    Supply and Demand for TVs.  (Make sure to include a graph with the initial equilibrium price

and quantity and the new price and quantity as well as an   explanation to support your answer for each question.) (30)

A.   As income increases, what happens to the price and quantity of TVs? (10 points)

B.   As the price of Sony TVs falls, what happens to the price and quantity of Samsung TVs? (10 points)

C.    If the government taxes TVs, what happens to the price and quantity of TVs? (10 points)

Top Answer

There are two kinds of changes in Demand or Supply curve, either it is movement along the same curve or... View the full answer


Samsung TV
Due to fall in price of Sony TV
of Samsung TV we'll
decrease meaning a leftword or
downward shift in demand curve
The equilibrium shifts from Er to Eng
I both the...

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