Explain each of the following statements using supply and demand diagrams?
Feb 14, 2010
in
Hurricane
a. a hurricane in South Carolina damages the cotton crop
b. The price of leather jacket falls
c. All colleges require morning exercise in appropriate attire
d. New knitting machines are invented
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One comment
Hey you on February 14, 2010 at 2:12 pm
a. Damaged cotton crop means diminished supply and regular demand (S shaped)
b. Cheaper leather jackets means demand will increase and supply remains the same.
c. The demand for exercise attire will increase.
d. This one is fun and tricky. You should do two diagrams. One for the old knitting machine with dwindling supply and demand and the new machine will have slowly increasing supply and demand.