Describe supply and demand curves

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Reference no: EM131482554

Question: Use supply and demand curves to show how each of the following situations would occur:

a. In the past year the price of Rotgut Lite Beer has increased from $2.50 to $3.00 per six pack. In spite of the price increase a larger quantity of Rotgut Lite was purchased.

b. Bad year Tire Company announced that fewer tires were sold this year than the year before. Bad year's president blames the lower sales on higher prices.

c. The demand for barley increased this year. Barley prices remained constant and the amount of barley offered for sale was also constant. A large, persistent shortage of barley was observed.

Reference no: EM131482554

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