Supply Demand Supply Demand 2 1. 3 4 5 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 knowing the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 2 When Shift Magnitudes Are Unknown Scenario 1 Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect on the undetermined equilibrium object. PRICE (Dollars per pen)
Supply Demand Supply Demand 2 1. 3 4 5 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 knowing the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 2 When Shift Magnitudes Are Unknown Scenario 1 Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect on the undetermined equilibrium object. PRICE (Dollars per pen)
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 11SQ
Related questions
Question
Transcribed Image Text:Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers Increases, causing more students to switch from
pencils 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
to its original position, just drag it a little farther.
Scenarlo 1
10
Supply
Demand
Supply
Demand
01
0 1 2
3
6
7.
9
10
4
QUANTITY (Millions of pens)
Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1
graph.
PRICE (Dollars per pen)
Transcribed Image Text:E Apps
O YouTube
A Maps
M Gmail
Supply
Demand
Supply
Demand
1
3
6
7
9
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 knowing the magnitude of the shifts, choose Cannot determine.
Change in Equilibrium Objects
Scenario 2
When Shift Magnitudes Are Unknown
Scenario 1
Equilibrium Object
Price
Quantity
True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect on the
undetermined equilibrium object.
MacBook Air
PRICE (Dollars per pen)
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