08 Jun Question t currently costs 500 doll
Question
t currently costs 500 dollars to install a new shower in your house. A new law requires each new shower to come with digital hot and cold water controls instead of old fashioned knobs that everyone uses today, installing the digital control costs the manufacturers an extra 200 per shower. Customers value the digital controls at 50 per showerI.
llustrate how the demand and supply curves for showers shift as a result of the new law.
what happens to the price of the new shower
who gains from this new law: buyer, seller, both or neither.
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