ECON 2G03 Chapter Notes - Chapter 4: Economic Equilibrium

• School: McMaster University
• Department: Economics
• Course: ECON 2G03
• Professor: Hannah Holmes

Document Summary

D increases; p and q both increase: s decreases; p increases and q decreases, s increases; p decreases and q increases, d increases; p and q both increase, d decreases: p and q both decrease. For questions 3 and 5 i have given the shifts and the change in p and q. Of course in your answers, you should be drawing the diagrams for each part. Also, consider each part separately: s decreases; p rises and q falls, d decreases; p and q both fall, d increases; p and q both rise, s increases; p falls and q rises. Keep going with the last two markets, in order. To answer this question completely, you need to draw 4 diagrams for part (a) and. This is a great question and it"s harder than the others.