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Please solve. Given the following market interactive: Supply and Demand III. GRAPH Price [per unit) Quantity [per unit oftime] The market is in equilibrium. Market

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Given the following market interactive: Supply and Demand III. GRAPH Price [per unit) Quantity [per unit oftime] The market is in equilibrium. Market price will not change. Suppose that there are shocks to both sides of the market. For example, on the demand side the price afe substitute good increases. On the supply side there is a decrease in the number of sellers. a. given these two shocks. Demand will: a Supply will: 0 Now check your work and determine the correct direction in the shift for demand and supply. Experiment with different size shocks. Note: using each slider, the center position represents nochange. There can be small, bigger or big shifts left or right. II: b. A small shift in demand and big shift in supply. What can you conclude about the net effect on equilibrium price and quantity? Equilibrium price: Increase o Equilibrium quantity: Decrease o Click 'reset'. c. A big shift in dema1d and a STEIN shift in supply. What can you conclude about the net effect on equilibrium price and quantity? Equilibrium price: Increase a Equilibrium quantity: 0 Click 'reset'. d. A big shift in demand and a big shift in supply. What can you conclude about the net effect on equilibrium price and quantity? Equilibrium price: a Equilibrium quantity: Unchanged o e. Given your experimentation what can you conclude about the net effect on equilibrium price and quantity given these two original shocks? Equilibrium price: Increase o Equilibrium quantity: 9

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