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

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
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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: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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