For each of the following, determine whether supply or demand (or both, or neither) will shift, what
Question:
For each of the following, determine whether supply or demand (or both, or neither) will shift, what direction each shift will be, and whether equilibriumquantity and price will rise, fall, stay the same, or change in an unknown direction:
a. (Market for used GameBoxes) The new GB2 video game console is released, making the GameBox obsolete. Everyone wants to get rid of their GameBoxand buy a GB2 instead.
b. (Market for leather handbags) A documentary is released detailing abuse inthe leather industry, making people feel bad about buying leather.
c. (Market for margarine) Due to a cow-based disease, butter supply shifted left, and butter price shot way up.
d. (Market for gasoline) The summer months arrive, when people like to go onroad trips.
Step by Step Answer:
Globalization For Development Meeting New Challenges Meeting New Challenges
ISBN: 9780191624032
1st Edition
Authors: Ian Goldin, Kenneth Reinert