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Consider the market for T-shirts in Melbourne and use the 4-step process of analysing market shocks (Also known as comparative statics) to determine what happens
Consider the market for T-shirts in Melbourne and use the 4-step process of analysing market shocks (Also known as comparative statics) to determine what happens in the each of the following scenarios (Note each scenario is independent).
a) The rate of unemployment falls boosting the general level of consumer income in Melbourne. (2.5 marks)
b) The cost of inputs for producing T-shirts increases. (2.5 Marks)
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