Principles of macroeconomics: Increase or Decrease

8. Shifts in supply or demand I The following graph plots the market for electric guitars in Miami, where there are always over 1,000 music stores. Suppose the municipal government, in an attempt to increase the local tax base, issues $1,000 vouchers to each household that moves to Miami. As a result, many new families move into the city. Show the effect of this change on the market for electric guitars by shifting one or both of the curves on the following graph, holding all else constant. 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. (a @ Oo Supply Demand _ O = a Supply G a g et o I o I 3G I ao I I Demand I I I I I QUANTITY (Guitars) Now suppose Congress passes a new tax that decreases the income of Miami residents. Screenshot It crecurme 4 cars are a Normal good, this will cause the demand for electric guitars to ae