The two accompanying diagrams show supply and demand curves for two substitute commodities: tapes and compact discs (CDs). a. On the right-hand diagram, show what happens when rising raw material prices make it costlier to produce tapes. b. On the left-hand diagram, show what happens to the market for CDs.
The two accompanying diagrams show supply and demand curves for two substitute commodities: tapes and compact discs (CDs). a. On the right-hand diagram, show what happens when rising raw material prices make it costlier to produce tapes. b. On the left-hand diagram, show what happens to the market for CDs.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 4PA
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The two accompanying diagrams show supply and demand curves for two substitute commodities: tapes and compact discs (CDs).
a. On the right-hand diagram, show what happens when rising raw material prices make it costlier to produce tapes.
b. On the left-hand diagram, show what happens to the market for CDs.
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