For each of the following, determine (i) the market in question; (ii) whether a shi in demand

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For each of the following, determine (i) the market in question; (ii) whether a shi in demand or supply occurred, the direction of the shi, and what induced the shi; and (iii) the effect of the shi on the equilibrium price and the equilibrium quantity. 

a. As U.S. gasoline prices fall, more people buy large cars. 

b. As technological innovation has lowered the cost of recycling used paper, fresh paper made from recycled stock is used more frequently. 

c. When a local cable company offers cheaper on-demand films, local movie theaters have more unfilled seats.

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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