The ad campaign is successtul, so it will shift the demand to the other side, your answer to a price change will come curve rightward. (4) How much? Here, you will need to draw from there. nightward a little, and then draw a second curve, shifting it powerful econometric models to simulate different economic rightward a lot. Now analyze the second issue: (1) Is it a demand or simple yet elegant practical application of economic theory supply issue? It's a supply issue. (2) Is it price, or some- is extremely useful to business managers in forecasting new thing else? Something else-in this case, it's a decrease equilibrium quantities and prices, and even a company's in input (capital) prices. (3) Which direction? Lower input future revenues and profits over time. costs will shift the supply curve rightward-Apple can make more units for the same price as before! (4) Finally, by how 1. What tools do you think businesses can use to establish much? Again, you have to go to your model drawing and their own demand and supply issues? shift the supply curve rightward, first a little and then a lot. 2. What role do time and time lags have on a business that is From the final diagram, you will see that equilibrium quanattempting to establish its own market equilibrium? What tity will always be more than it was before the changes, items would you think would be affected by time lags? but price is indeterminate. To see what happens to price, youlookattheintersectionsofsmall(orlarge)changesindemandandlarge(orsmall)changesinsupply.Dependingoversmallerbusinessesinestablishingtheirownlevelofequilibrium?Givesomespecificexamplesofhan 3. In what ways do large businesses have advantages on your confidence in which curve will shift more or less these advantages would affect equilibrium