Question
For each of the following scenarios, draw and fully label a representative supply and demand diagram for each scenario. Show what you anticipate to be
For each of the following scenarios, draw and fully label a representative supply and demand diagram for each scenario. Show what you anticipate to be the changes to equilibrium price and quantity. Consider the market for tea a. the price of coffee (a substitute) decreases
b. the wages of tea farm workers decrease, on average
c. there is a change today where tea sellers anticipate an increase in the price of tea "tomorrow"
d. there is a recession and tea is an inferior good
e. there is a technological shock making it more costly to produce tea
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