Economics (ECO 401)
Assignment # 1
Total marks = 10
To test your understanding of demand and supply
analysis, I am giving you six generic results from the interaction of supply
and demand. Your job is to decide what shifts produced those results. The shifts
are given without graphical description. On the left-hand side of the table
below, I list combinations of movements of observed prices and quantities,
labeling them 1–6. On the right we give six shifts in supply and demand,
labeling them a–f.
You are to match the shifts with the price and
quantity movements that best fit each described shift, using each shift and
movement only once. My recommendation to you is to draw the graphs that are
taught in lecture 3 decide what happens to price and quantity and then
find the match in 1–6.
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