What are the pre-shift and post-shift equilibrium

Reference no: EM131228292

Interpreting Graphs: Shifting Curves

Graphs show statistical information in a visual manner. A graph that shows a shifting curve should immediately alert the reader to one of the following: a change in quantity demanded at every price, or a change in quantity supplied at every price. In Figure 6.9, a change in the number of producers has caused an increase in supply at every price. The sandwich shop across the street from Forest View High School now has a competitor.

TECHNIQUES FOR ANALYZING SHIFTING CURVES Use the following strategies, along with what you learned throughout Section 1, to analyze the graph.

THINKING ECONOMICALLY Analyzing

1. What are the pre-shift and post-shift equilibrium prices for a sandwich? Will an increase in quantity supplied at every price always result in a lower equilibrium price? Why?

2. Imagine that instead of an increase in supply, there is a decrease in demand. How will the equilibrium price change? Why?

3. On a separate sheet of paper, sketch intersecting quantity supplied and demanded curves with an equilibrium price of $4 at 80 sandwiches. How have the curves shifted from those that appear in Figure 6.9?

Reference no: EM131228292

Questions Cloud

Calculate the net present value of dividends paid : FIN303 - Financial Management - Calculate the cost of equity by applying the Capital Asset Pricing Model (CAPM) and Calculate the net present value of dividends paid.

Half of all young women are shorter than what height : The heights of American women aged 18 to 24 are approximately normally distributed with mean 65 inches and standard deviation 2.1 inches. Half of all young women are shorter than what height?

What programs are ignored : (Official Poverty Level) How does the U.S. Department of Agriculture calculate the official poverty level? What government assistance programs does the Census Bureau consider when calculating household income? What programs are ignored?

Why have the experiences of these two age groups differed : However, poverty among that portion of the U.S. population that is less than 18 years old is no lower today than in the 1970s.Why have the experiences of these two age groups differed?

What are the pre-shift and post-shift equilibrium : What are the pre-shift and post-shift equilibrium prices for a sandwich? Will an increase in quantity supplied at every price always result in a lower equilibrium price? Why?

Determine the relationship : If vA = vB = vC = vI, determine the relationship between (W/L)p and (W/L)n such that vI = 2.5 V when all transistors are biased in the saturation region.

Focusing on how gross domestic product is measured : Focusing on how Gross Domestic Product (GDP) is measured through its various components, explain in detail how each of these phases of the 'mining boom' impacts on GDP

How would researchers detect such discrimination : (Poverty and Discrimination)Which types of discrimination may cause an earnings gap between white and black workers? Consider discrimination in schooling, for example. How would researchers detect such discrimination?

Determine the noise margins of a cmos inverter : Determine the noise margins of a CMOS inverter biased at VDD = 3.3 V with (W/L)n = 2 and (W/L)p = 5. Assume VT N= 0.4 V and VT P = -0.4 V.

User Account

All Pages