Use the graphs below to identify events that cause demand or supply to shift. A

Question

Use the graphs below to identify events that cause demand or supply to shift. A decrease in consumer income, assuming the product is a normal good A decrease in consumer income, assuming the product is an inferior good An increase in consumer income, assuming the produce is a normal good An increase in the costs of production A decrease in the costs of production A decrease in the price of a good considered a substitute by consumers An increase in the price of a good considered a substitute by consumers A decrease in the price of a good considered a complement by consumers An increase in the price of a good considered a complement by consumers Improved production technology

Explanation / Answer

[A]

1, 6, 9: These events will decrease demand & demand curve will shift toward left, from D1 to D2 as shown in Graph (2)

[B]

2, 3, 7, 8: These events will increase demand & demand curve will shift outward, from D1 to D2 as shown in graph (1)

[C]

4: Will decrease supply & supply curve will shift leftward, from S1 to S2 as in graph (4)

[D]

5, 10: Will increase supply & shupply curve will shift toward right, from S1 to S2 as shown in graph (3)

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.