Reference no: EM132550538
Now it's time to practice demonstrating the impact of changes in the determinants of supply and demand. All students in public schools need notebooks of some type when they attend classes. For each of the scenarios below, explain the effects on demand and/or supply and equilibrium price and quantity of spiral bound notebooks using a correctly labeled supply and demand graph. Under your hand-drawn graph, list the determinant of supply and/or demand that causes each shift as well as the change in price and quantity. You should have four graphs and write out what happens to equilibrium price, quantity, and what determinant you identified. To help you begin, we've done one for you. The written answer should be set up under the graph as follows:
Price: Increase or Decrease (select one)
Quantity: Increase or Decrease (select one)
Determinant: One of the determinants for demand (TRIBE) or supply (ROTTEN) that causes the shift.
The scenarios are:
-The government provides a subsidy for notebook manufacturers.
-Your income increases, and spiral bound notebooks are an inferior good.
-Consumers expect the price of spiral bound notebooks to double next month.
-The government raises taxes on businesses at the same time that students receive their supply list for the new school year. MAKE SURE TO INCLUDE GRAPHS