Question
Use supply and demand curves to show the change in the price of bread and the quantity sold, when these events occur:Note one graph for
Use supply and demand curves to show the change in the price of bread and the quantity sold, when these events occur:Note one graph for each letter (total 7). HINT:Bread and Potatoes are Substitutes;Price Floor (effective price above market equilibrium) Price Ceiling(effective price below market below market equilibrium)
a)The population grows.
b)People's incomes fall and unemployment increases in a recession.
c)The price of potatoes rises.
d)The price of butter rises.
e)A drought occurs in the wheat-growing regions.
f)To protect farmers' incomes, the government sets an effective price floor for wheat.
g)To protect consumers from inflation, the government sets an effective price ceiling for bread.
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