Explain how you would draw each of the following statements using supply and demand diagrams?
Jan 29, 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
Like this post? Subscribe to my RSS feed and get loads more!
One comment
Black Hole Sun on January 29, 2010 at 9:24 am
Just look at every question first considering, does it affect Demand or Supply, or maybe both!
A is clearly a decrease in Supply, or the supply line moving to the left.
B could be either a decrease in demand, or an increase in supply.
I’m not sure about C, its a weird one. Are colleges forced to provide this, or are they doing it and charging for it, or making money from the attire? Need more information.
D is an increase in supply, easy one.