Draw a supply and demand diagramshowing the impact of each of the following events on equilibrium price and quantity in the market for paint. Briefly explain your reasoning.There have recently been some important cost-saving inventions in the paint-making industry.Hailstorms damaged several factories that make paint, forcing them to close down for several months.There have recently been some important cost-saving inventions in the paint-making industry, and, because of severe hailstorms, many people need to repaint now.

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 4SCQ: Many changes are affecting the market for oil. Predict how each of the following events will affect...

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Draw a supply and demand diagramshowing the impact of each of the following events on equilibrium price and quantity in the market for paint. Briefly explain your reasoning.

There have recently been some important cost-saving inventions in the paint-making industry.
Hailstorms damaged several factories that make paint, forcing them to close down for several months.
There have recently been some important cost-saving inventions in the paint-making industry, and, because of severe hailstorms, many people need to repaint now.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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