Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens. Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowìng the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 2 Scenario 1 When Shift Magnitudes Are Unknown Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object. True O False MacBook Air

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 6SQP
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Related questions
Question
1.
3
4
8
10
QUANTITY (MIllions of pens)
Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that
wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens.
Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change
in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the
resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you
cannot determine the answer without knowìng the magnitude of the shifts, choose Cannot determine.
Change in Equilibrium Objects
Scenario 2
Scenario 1
When Shift Magnitudes Are Unknown
Equilibrium Object
Price
Quantity
True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the
undetermined equilibrium object.
O True
False
MacBook Air
F10
F9
F7
吕0
F3
000
000 F4
Transcribed Image Text:1. 3 4 8 10 QUANTITY (MIllions of pens) Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens. Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowìng the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 2 Scenario 1 When Shift Magnitudes Are Unknown Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object. O True False MacBook Air F10 F9 F7 吕0 F3 000 000 F4
Consider the market for pens. Suppose that increased medical concems over lead pencils have led schools to steer away from pendl use In favor of
pens. Moreover, the price of ink, an important input in pen production, has increased considerably.
On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and SUpply of pens.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
Scenario 1
10
-0-
9
Supply
Demand
8
Supply
Demand
10
7
3 4
QUANTITY (MIllions of pens)
5
6
MacBook Air
FIV
F10
F7
吕0
F3
DO0 F4
F5
PRICE (Dollars per pen)
Transcribed Image Text:Consider the market for pens. Suppose that increased medical concems over lead pencils have led schools to steer away from pendl use In favor of pens. Moreover, the price of ink, an important input in pen production, has increased considerably. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and SUpply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Scenario 1 10 -0- 9 Supply Demand 8 Supply Demand 10 7 3 4 QUANTITY (MIllions of pens) 5 6 MacBook Air FIV F10 F7 吕0 F3 DO0 F4 F5 PRICE (Dollars per pen)
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