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Using supply-and-demand diagrams, show the effect of the following events on the market
Chapter 4, Problem Problems and Applications 4.6(choose chapter or problem)
Using supply-and-demand diagrams, show the effect of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop. b. The price of leather jackets falls. c. All colleges require morning exercise in appropriate attire. d. New knitting machines are invented.
Questions & Answers
QUESTION:
Using supply-and-demand diagrams, show the effect of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop. b. The price of leather jackets falls. c. All colleges require morning exercise in appropriate attire. d. New knitting machines are invented.
ANSWER:Step 1 of 2
The equilibrium level of the commodity in the market is found at the intersecting point of the supply and the demand curves. The equilibrium point can be determined by the market forces.