Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Problems and Applications - Page 87: 3

Answer

a) Expectations affect demand, and demand increases. b) Input prices affect supply, and supply decreases. c) Technology affects supply, and supply increases. d) Substitute goods affect demand, and demand increases. e) Income affects demand, and demand decreases.

Work Step by Step

Please see the graphs with the changes to the supply or demand curves in green. The new supply or demand curves are also marked S' (for a new supply curve) or D' (for a new demand curve).
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