Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped considerably.

On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens

Gila Hank Eastern Ariz X _> Principles of Macroecc X MindTap - Cengage Le X Course Hero x MindTap - Cengage Le X 9New Tab X + V X -) ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5996242458107904981063305721&eISBN=9780357133576&snapshotld=2891002&id=1460431... @ Eastern Arizona Col... Compare College T... @ Grammarly P OWL // Purdue Writ... M Gmail | Advanced Search: E... (S) Federal Student Aid @ Account Home (504) How to use th... New Tab K Principles of Macroecc X MindTap - Cengage Le X Course Hero x MindTap - Cengage Le X 9New Tab X + V X -) ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5996242458107904981063305721&eISBN=9780357133576&snapshotld=2891002&id=1460431... _ Eastern Arizona Col... Compare College T... @ Grammarly P OWL // Purdue Writ... M Gmail | Advanced Search: E... (SA) Federal Student Aid ) Account Home (504) How to use th... New Tab K