solve

In the following example, there is a major event and a minor event. Determine whether each change relates to demand or to supply and adjust the graph accordingly. Then, describe the impact on price and quantity and the relative magnitudes of the price and quantity changes. Major event: A bitterly cold and unusually snowy winter season has significantly depleted the amount of available rock salt. Minor event: There is another snowstorm, and roads and sidewalks need to be salted. The major event leads to in Rock salt and the minor event leads to Supply in Therefore, equilibrium price will go substantially and equilibrium quantity will less Price substantially. Demand Quantity