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Discuss and describe a market in which prices have changed in recent months or years.
Analyze the change.
(1) Is the price change primarily the result of shifts in demand or shifts in supply (or the interaction of both)? explain (see 2 below)
(2) Which direction have the relevant curves shifted, and how can you explain these shifts? (Be sure to be clear about whether you are thinking there have been increases or decreases in demand or supply, and what the predicted effects on equilibrium price and/or quantity are of each kind of shift.)
(3) (If this applies to your product:) Have the changes in this product's price had other effects on other markets (prices of substitutes or complements, on the demand side, or costs of production, if the product enters as a raw material or part into the production of other products, etc) or other aspects of life? Explain
1. The following table shows for a simple production function.
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