Draw supply and demand diagrams for market A for each of the following. Then use your diagrams

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Draw supply and demand diagrams for market A for each of the following. Then use your diagrams to illustrate the impact of the following events. In each case, determine what happens to price and quantity in each market.

a. A and B are substitutes, and the price of good B rises.

b. A and B satisfy the same kinds of desires, and there is a shift in tastes away from A and toward B.

c. A is a normal good, and incomes in the community increase.

d. There is a technological advance in the production of good A.

e. B is an input used to produce good A, and the price of B rises.


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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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