MGEA01H3 Lecture Notes - Inferior Good, Price Controls, Word Problem For Groups

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA01H3
• Professor: Kieran Furlong

Document Summary

What might cause a demand function to shift to the right? (2. 50 points) An increase in the price of a substitute. (you answered correctly!) Your response: demanders, wanting to ensure they acquire the good, will bid the price lower. As a result, the equilibrium price moves from _____ to. The correct answer is: ; , ; , ; , ; , ; , the supply of shrek action figures is shown below. The bold, solid line is the current supply. If the price of the plastic used to make action figures rises, supply will (2. 50 points) Your response: shift from current supply to supply a. (you answered correctly!) Your response: increase in quantity demanded. (you answered correctly!) Your response: a shift in the demand curve. Learning objective: change in demand vs quantity demanded. The correct answer is: goods; not, less; downward, more; downward, less; upward, more; upward, a market in disequilibrium would feature (2. 50 points)