provide a clearly labelled graph with the initial positions of the supply and demand curves(indicate the initial equilibrium price and quantity with a P*, and Q*o) and show how each curvewill move (if at all) and how that will affect the new equilibrium in the short run (during a period oftime too short for new producers to enter or exist the market). Indicate the new equilibrium priceand quantity by P*, and Q*o, respectively. Consider each change in condition separately (i.e.,consider only one change at a time in isolation). Draw the graph so that the initial positions aresuch that P*, and Q*, are close to the middle of the graph.Product: Personal Protective Equipment; Market: U.S.; Time frame: During pandemicrise in 2020а.b.Product: Bicycles; Market: Cincinnati; Change: An decrease in gasoline pricesС.Product:Boneless skinless chicken thighs; Market: Ohio; Change: An increase inminimum waged. Product: In-theater movie viewing; Market: US; Time frame: During pandemic rise in2020е.Product: Bicycles: Market: Cincinnati; Change: a decrease in the cost of aluminumTo think about: Given the changes considered above, if the number of firms in themarket can change (i.e., there is enough time for new firms to enter the market), howmight prices and quantities change relative to the "short-run" affects you identifiedabove?

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MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2TY

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Suppose that today the market for homes is in equilibrium. Tomorrow both the supply and demand curves for homes will shift to the right. As a result, the equilibrium price . and the equilibrium quantity . O will fall; will fall O will fall; will rise O cannot be determine; will fall O cannot be determined; will rise
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