Answered: Draw 3 graphs explaining the movement…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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Question

Draw 3 graphs explaining the movement on the supply curve (1st graph), shift left (2nd graph), and shift right (3rd graph) of supply curve applied to food supply examples, providing a minimum of one economic factor per graph to explain the changes in supply.

Include:
- Explanation of equilibrium price and quantity, and how equilibrium shifts with supply and demand curve shifts, applied to the examples used in the graphs and the explanation of shortage & surplus, applied to the examples used in the graphs.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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