4. Suppose that a market with an inelastic demand curve experiences an upward shift (to the left) in the supply curve. Using comparative statics, analyze how the equilibrium price and equilibrium quantity in this market will change as a result of this shift in the supply curve. What is the magnitude of the change in the equilibrium price and equilibrium quantity? Be sure to illustrate your answer with graph.

4. Suppose that a market with an inelastic demand curve experiences an upward shift (to the left) in the supply curve. Using comparative statics, analyze how the equilibrium price and equilibrium quantity in this market will change as a result of this shift in the supply curve. What is the magnitude of the change in the equilibrium price and equilibrium quantity? Be sure to illustrate your answer with graph.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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