08 Jun Question Using supply-and-demand diagrams
Question
Using supply-and-demand diagrams explain how the following events would affect the supply or demand in each market (draw the original demand and supply and in the same graph draw the NEW demand or supply-showing your shifts) and how the quantity and price of in equilibrium will be affected:
What happens in the market for tablet computers if: the price of monthly data plans required to access the internet everywhere using a tablet computer falls in price?
What happens in the market for grapes if: several medical studies show that drinking red wine in moderation is good for the heart?
What happens in the market for ramen noodles if: there is a world-wide recession that lowers consumers’ incomes (assume ramen noodles are an inferior good)?
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