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1. Using demand and supply analysis, illustrate how each of the following scenarios would affect the equilibrium price and quantity in the respective markets. The use of carefully labelled diagrams is required with an explanation.  a. The introduction of a new technology reduces the cost of production for all firms in the computer market.  b. A strong advertising campaign has caused the consumer to demand more Pepsi at every existing price.  c. The passage of Dorian a category 5 hurricane destroys fifty percent of the carrot crop.

1. Using demand and supply analysis, illustrate how each of the following scenarios would affect the equilibrium price and quantity in the respective markets. The use of carefully labelled diagrams is required with an explanation.  a. The introduction of a new technology reduces the cost of production for all firms in the computer market.  b. A strong advertising campaign has caused the consumer to demand more Pepsi at every existing price.  c. The passage of Dorian a category 5 hurricane destroys fifty percent of the carrot crop.

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
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1. Using demand and supply analysis, illustrate how each of the following scenarios would affect the equilibrium price and quantity in the respective markets. The use of carefully labelled diagrams is required with an explanation.

 a. The introduction of a new technology reduces the cost of production for all firms in the computer market.

 b. A strong advertising campaign has caused the consumer to demand more Pepsi at every existing price.

 c. The passage of Dorian a category 5 hurricane destroys fifty percent of the carrot crop.

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