Question
In some scenarios, the amount of the change in the market might be ambiguous because you are not told that one change is greater than
In some scenarios, the amount of the change in the market might beambiguous because you are not told that one change is greater than the other. In those situations, the price or quantity might look relatively the same. As a result, the price of quantity will remain either P1 or Q1.You will still identify the part of the new equilibrium that increased or decreased.Work to draw your new D and S curves the same distance apart, that way the ambiguity will show easier. (Example following) If the prompt alludes that one change is greater than another, then draw accordingly by shifting one out more than the other.
S2 Price S1 P2 P1 D2 D1 Q1 Quantity Notice: Based on the distance being relatively the same between my shifts from D1 to D2 and S1 to S2, the Q1 and Q2 will both be at the same QuantityStep by Step Solution
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