Effect of the shift on the equilibrium price and quantity

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In each of the following examples determine (1) the market in question; (2) whether a shift in demand or supply occurred the direction of the shift and what induced the shift; and (3) the effect of the shift on the equilibrium price and quantity. Draw your answer.

a. As the price of gasoline fell in the United States in the 1990’s, more people bought large cars.

b. As technological innovation has lowered the cost of recycling used paper, fresh paper made from recycled stock is used more frequently.

c. As a local cable company offers cheaper pay-per-view films, local movie theaters have more unfilled seats

Reference no: EM13898478

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