Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from eendls to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped 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 co Its original position, just drag it a little farther. Scenarlo 1 10 Supply Demand Supply Demand 10 O 1 2 3 5 6. QUANTITY (Millions of pens) PRICE (Dollars per pen)
Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from eendls to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped 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 co Its original position, just drag it a little farther. Scenarlo 1 10 Supply Demand Supply Demand 10 O 1 2 3 5 6. QUANTITY (Millions of pens) PRICE (Dollars per pen)
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 11SQ
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In the question above, it is given that :
- Consider a market for pens.
- A large number of students shift from pencils to pens due to allergy from pencils.
- The price of plastic which is an important input in the production of pens has fallen.
To find :
- Effect of these two events on demand and supply curve.
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