Question: When the demand for toilet paper increases, the equilibrium quantity sold increases. Consumers are buying more, and producers are producing more. a. How do producers
a. How do producers receive the signal that they need to increase production to meet the new demand?
b. Based on the facts given above, can you say that an increase in the demand for toilet paper causes an increase in the supply of toilet paper? Carefully explain why or why not.
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a Producers react to the signal of a higher price that has r... View full answer
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