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Q: When the cost of cotton decreases, what market is affected?
A: a. Demand shifts to the left in the entire area. Supply shifts to the left only in damaged areas. Equilibrium price decreases b. No effect. Price of hamburger increases equally. [ Possibly slight shift of demand to left, depending on change in other food prices. c. Supply remains the same with higher candy price. Demand shifts slightly to the right. Consumers pay the higher price without much
decrease in demand. d. Supply shifts right causing prices to fall. Demand curve remains in place most likely. e. Supply curve shifts left, demand follows slowly as people adjust to higher price. f. etc. ]
Expert answered|badgerpoe|Points 630|
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Asked 7/11/2011 8:22:49 PM
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