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3. Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity will change under the two following scenarios. Be certain to properly label your graphs. a) Market for biogas: Over the past year, the number of houses in one country using bio gas for heating increases while the number of companies producing biogas decreases. b) Market for instant noodle (an "inferior" good): Over the past year, the average income in one country rose by 5% while the union of instant noodle company leaders managed to gain large wage increases for their workers.

3. Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity will change under the two following scenarios. Be certain to properly label your graphs. a) Market for biogas: Over the past year, the number of houses in one country using bio gas for heating increases while the number of companies producing biogas decreases. b) Market for instant noodle (an "inferior" good): Over the past year, the average income in one country rose by 5% while the union of instant noodle company leaders managed to gain large wage increases for their workers.

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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3. Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity will change under the two following scenarios. Be certain to properly label your graphs. a) Market for biogas: Over the past year, the number of houses in one country using bio gas for heating increases while the number of companies producing biogas decreases. b) Market for instant noodle (an "inferior" good): Over the past year, the average income in one country rose by 5% while the union of instant noodle company leaders managed to gain large wage increases for their workers.
Transcribed Image Text:3. Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity will change under the two following scenarios. Be certain to properly label your graphs. a) Market for biogas: Over the past year, the number of houses in one country using bio gas for heating increases while the number of companies producing biogas decreases. b) Market for instant noodle (an "inferior" good): Over the past year, the average income in one country rose by 5% while the union of instant noodle company leaders managed to gain large wage increases for their workers.
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