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Use a supply and demand diagram to show what happens to the indicated prices and quantities for these 4 cases. You will mark the starting
Use a supply and demand diagram to show what happens to the indicated prices and quantities for these 4 cases. You will mark the starting price with a P1, the ending price with a P2, the starting quantity with a Q1, and the ending quantity with a Q2. Be sure to label all the lines on your diagram. You will find models of working these type problems in the video lecture 5, and also figures 3.17 and 3.18 in the textbook. Note the textbook uses a slightly different symbology. They start at Po instead of P1. Please use my symbology starting with 1 rather than 0. Also, the textbook marks the point of equilibrium with an "E". You do not have to do that. 1. Price and quantity of soup if incomes 2. Price and quantity of dog food if there is a rise in rise and soup is an inferior good. price of dogs and dogs and dog food are complements
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