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Please help me understand how this works. Provide step by step detail and description for better understanding. Case 1) A health problem associated with a
Please help me understand how this works. Provide step by step detail and description for better understanding.
Case 1) A health problem associated with a coronavirus has broken out in your country. As a result of the situation, the number of consumers wanting to purchase hand sanitizer has increased this season.
- prepare a graph that shows the intersection of the demand and supply curves which establishes the equilibrium point, the price and the quantity of the initial equilibrium.
- Analyze situation and identify the curves movements find the equilibrium point, the price, and the quantity of the final equilibrium, and compare to the initial equilibrium.
- Evaluate situation in terms of:
- The effect on demand (increases or decreases)
- The effect on supply (increases or decreases)
- The effect on equilibrium price and quantity (increases or decreases)
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