Suppose we are analyzing the market for hot chocolate.  Graphically illustrate the impact the following would have on demand or supply.  Also show how equilibrium price and equilibrium quantity would change. The price of tea, a substitute for hot chocolate, falls.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter4: Markets In Action
Section: Chapter Questions
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Suppose we are analyzing the market for hot chocolate.  Graphically illustrate the impact the following would have on demand or supply.  Also show how equilibrium price and equilibrium quantity would change.

The price of tea, a substitute for hot chocolate, falls.

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