Fabric is used to make dresses. If the price of fabric increases what is likely to happen to the equilibrium price and quantity for dresses. If price stays the same would that be equilibrium? Why or why not? What will eventually happen in the market? What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Illustrate using a graph. Note: In each question make sure you discuss which determinant is involved and what is happening to P and Q. In addition, in questions 1-5 only make sure you specify which Q it is (Qs orQd) and how do you know. Questions 1-5 only: If price remains the same after demand or supply changes would that be equilibrium? Why or why not?
5. Fabric is used to make dresses. If the
Note: In each question make sure you discuss which determinant is involved and what is happening to P and Q. In addition, in questions 1-5 only make sure you specify which Q it is (Qs orQd) and how do you know.
Questions 1-5 only: If price remains the same after demand or supply changes would that be equilibrium? Why or why not?
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