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Business, 04.09.2020 22:01 lanaiheart7
Explain the possible effects on demand and/or supply and equilibrium price and quantity of spiral bound notebooks using a correctly labeled supply and demand graph with equilibrium price and quantity labeled. The graph needs to show a shift.
a) The price of natural gas, a resource used by manufacturers throughout the United States, doubles.
Price: Increase
Quantity: Decrease
Determinant: Resource cost and availability
b) The government provides a subsidy for notebook manufacturers.
Price: Decrease
Quantity: Increase
Determinant: Taxes, Subsidies, and government regulations
c) Your income increases and spiral bound notebooks are an inferior good.
Price: Decrease
Quantity: Decrease
Determinant: Income
d) The price of binders and paper, a substitute for spiral bound notebooks, decreases.
Price: Decrease
Quantity: Decrease
Determinant: Related goods and services
e) A new binding machine is invented that binds in half the time.
Price: Decrease
Quantity: Increase
Determinant: Technology
f) The price of all goods using paper is expected to double next month.
Price: Decrease
Quantity: Decrease
Determinant: Expectations
g) The government raises taxes on businesses at the same time that students receive their supply list for the new school year.
Price: Increase
Quantity: Decrease
Determinant: Taxes
h) The price of pens and pencils falls dramatically
Price: Increase
Quantity: Increase
Determinant: Related goods and services
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