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Lecture Essentials of economics (3/e): Chapter 3A - Brue, McConnell, Flynn
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Lecture Essentials of economics (3/e): Chapter 3A - Brue, McConnell, Flynn
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Chapter 3W - Web appendix: Additional examples of supply and demand. This appendix focuses on changes in supply and demand and the subsequent effect on equilibrium price and equilibrium quantity. | Web Appendix: Additional Examples of Supply and Demand Chapter 3W McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved This appendix focuses on changes in supply and demand and the subsequent effect on equilibrium price and equilibrium quantity. Lettuce Supply shifts left for lettuce Weather destroys part of the crop Demand doesn’t change Consumers still want as much lettuce as before Equilibrium price rises, which will reduce the quantity demanded App 3- As a result of bad weather, the supply of lettuce decreases and shifts to the left, but demand has not changed because there haven’t been any changes in any of the determinants of demand. When supply decreases, equilibrium price increases and quantity falls. Lettuce D1 S1 Q1 P1 Quantity (pounds) Price (per pound) S2 Q2 P2 0 App 3- This market represents the demand and supply of lettuce. Freezing weather decreases the supply of lettuce, reflecting lower quantities supplied at every price. The demand for lettuce remains the same after the freeze. The price of lettuce rises and the quantity available in the market is reduced. Exchange Rates Exchange rates — the price of one country’s currency in terms of another country’s currency Currency appreciation Currency depreciation App 3- Currency appreciation means the value of one of the currencies, in terms of the other, has increased. Currency depreciation means the value of one of the currencies, in terms of the other, has decreased. Exchange Rates LO6 D1 S1 Q1 $1.25 Quantity of Euros Dollar Price of 1 Euro D2 0 $1.50 Q2 App 3- Currency appreciation can occur as the demand for a country’s product increases around the world; the demand for that country’s currency increases, which increases the value of that country’s currency. Currency depreciation can occur as the home country sells more of the home country’s currency to buy the other currency; they have increased the supply of the home currency, . | Web Appendix: Additional Examples of Supply and Demand Chapter 3W McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved This appendix focuses on changes in supply and demand and the subsequent effect on equilibrium price and equilibrium quantity. Lettuce Supply shifts left for lettuce Weather destroys part of the crop Demand doesn’t change Consumers still want as much lettuce as before Equilibrium price rises, which will reduce the quantity demanded App 3- As a result of bad weather, the supply of lettuce decreases and shifts to the left, but demand has not changed because there haven’t been any changes in any of the determinants of demand. When supply decreases, equilibrium price increases and quantity falls. Lettuce D1 S1 Q1 P1 Quantity (pounds) Price (per pound) S2 Q2 P2 0 App 3- This market represents the demand and supply of lettuce. Freezing weather decreases the supply of lettuce, reflecting lower quantities supplied at .
TÀI LIỆU LIÊN QUAN
Lecture Essentials of economics (3/e): Chapter 1 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 1W - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 2 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 3 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 3A - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 4 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 5 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 6 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 7 - Brue, McConnell, Flynn
Lecture Essentials of economics (3/e): Chapter 8 - Brue, McConnell, Flynn
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