b) Suppose that the market price and the quantity traded are determined by supply and demand at equilibrium price. Now illustrate and explain very briefly by using a graph for what happens to the market equilibrium when technology improves and price of the substitute good increases at the same time (assuming both change by the same per cent) (You can answer the question by using only one graph) (15 points)
b) Suppose that the market price and the quantity traded are determined by supply and demand at equilibrium price. Now illustrate and explain very briefly by using a graph for what happens to the market equilibrium when technology improves and price of the substitute good increases at the same time (assuming both change by the same per cent) (You can answer the question by using only one graph) (15 points)
Chapter4: Markets In Action
Section: Chapter Questions
Problem 6SQ
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Transcribed Image Text:b) Suppose that the market price and the quantity
traded are determined by supply and demand at
equilibrium price. Now illustrate and explain very
briefly by using a graph for what happens to the market
equilibrium when technology improves and price of the
substitute good increases at the same time (assuming
both change by the same per cent) (You can answer
the question by using only one graph) (15 points)
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