A new technology reduces the time it takes to make a pair of khaki pants. The price of the cloth used to make khaki pants falls. The wage rate paid to garment workers increases. The price of jeans increases. People's incomes increase. Assignment  Draw a demand-supply graph and label the axes with the price and quantity of khaki pants. Create one graph that shows each of the demand-supply curves for the five scenarios listed Above    Use five different colors to represent each of the five scenarios. Clearly identify your finished graph.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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  • A new technology reduces the time it takes to make a pair of khaki pants.
  • The price of the cloth used to make khaki pants falls.
  • The wage rate paid to garment workers increases.
  • The price of jeans increases.
  • People's incomes increase.

Assignment 

Draw a demand-supply graph and label the axes with the price and quantity of khaki pants.

Create one graph that shows each of the demand-supply curves for the five scenarios listed Above 

 

  • Use five different colors to represent each of the five scenarios.
  • Clearly identify your finished graph.
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  • Compare the new demand curve or supply curve by drawing it on the same graph.
  • Find the new equilibrium and compare it with the original one in terms of equilibrium price and quantity and explain your findings.
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