For each of the following events described, indicate the effects to the demand and to the supply. Use the demand and supply graphs provided below to match these events. Then determine what happens to the market equilibrium price and equilibrium quantity. Scenario: In 1997 and 1998, the economy expanded, increasing the demand for labor and pushing up wages. Change in Demand * Increase Decrease Did not Change Indeterminate
For each of the following events described, indicate the effects to the demand and to the supply. Use the demand and supply graphs provided below to match these events. Then determine what happens to the market equilibrium price and equilibrium quantity. Scenario: In 1997 and 1998, the economy expanded, increasing the demand for labor and pushing up wages. Change in Demand * Increase Decrease Did not Change Indeterminate
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 11PA
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Transcribed Image Text:For each of the following events described, indicate the effects to the demand and to the supply. Use the
demand and supply graphs provided below to match these events. Then determine what happens to the
market equilibrium price and equilibrium quantity.
Scenario: In 1997 and 1998, the economy expanded, increasing the demand for
labor and pushing up wages.
Change in Demand *
Increase
Decrease
Did not Change
O Indeterminate
Change in Supply *
Increase
Decrease
Did not Change
O Indeterminate
Graph *
So
So
Do
Do
A
B
O A
В
P
So
So
Do
Do
D.
So
So
Do
Do
F
E
So
So
D
Do
Do
G
O G
O H
So
So
Do
Do
D1
Q
So
Do
D1
Q
K
O K
Change in market equilibrium price. *
Increase
Decrease
Did not Change
Indeterminate
Change in market equilibrium quantity. *
Increase
Decrease
Did not Change
Indeterminate
O O
O O
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