For each question start with a supply and demand graph of the market for tennis rackets. What happens to supply or demand in each scenario? Explain why and show on graph labeling the new equilibrium point.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
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Problem 5CQQ
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For each question start with a supply and demand graph of the market for tennis rackets. What happens to supply or demand in each scenario? Explain why and show on graph labeling the new equilibrium point.
3. The price of tennis balls increases.
4. The wages of tennis racket factory workers decreases
(but their productivity doesn't change).
5. The price of golf clubs goes up.
Transcribed Image Text:3. The price of tennis balls increases. 4. The wages of tennis racket factory workers decreases (but their productivity doesn't change). 5. The price of golf clubs goes up.
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