Answer Happy

13. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an alergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has increased considerably On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther Scenario 1 10 D Demand -0- Supply per penj ing SUDES la E O 126 PM VI/2022 ED
PRICE (Dollars per pen) 10 9 B 2 1 + 0 01 2 Scenario 1 Supply Demand 8 3 4 6 7 QUANTITY (Millions of pens) 9 10 Demand Supply
CENGAGE MINDTAP Homework (Ch 04) # Next, complete the following graph, labeled Scenario 2 by shifting the supply and demand curves in the same way that you did on the scenario 1 graph 2 Scenario 2 -0 Demand 9 PRICE (Dollars per per Supply Demand H a Supply Q Searth this course 0x O la N s 4 P >. + W OT M 126 PM D 5/28/2022 EBD O
Homework (Ch 04) LUNY (Mors or pres) Compare both the Scenario 1 and Scenano 2 graphs, Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine, Change in Equilibrium Objects Scenario 2 Scenario 1 When Shift Magnitudes Are Unknown Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, you can always determine the effect on price and quantity without knowing the magnitude of the shifts. O True & C O D 930 A-Z 5 لمية Curs +0 M + 126 PM 5/28/2012 CI