As the Lunar New Year approaches, more people would like to buy the red lantern to decorate their houses. Explain how this event affects the equilibrium price and quantity in the market for Chinese red lanterns. Illustrate your analysis with a diagram. What are the price buyers pay and the price sellers receive in the new equilibrium? Also explain what happens to the revenue of the sellers in this market.

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Step 12 Impact of the new year As the new year approaches people buy more red lanterns for decorativ... View the full answer