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Using Graphs, Explain What Will Happen to Equilibrium Price and Equilibrium

question 84

Essay

Using graphs, explain what will happen to equilibrium price and equilibrium quantity of a product as a result of each of the following scenarios:
a. A rise in the number of buyers and a decrease in the cost of producing the product.
b. A decrease in the number of suppliers and an increase in the number of buyers.
c. An increase in the cost of production and a decrease in consumers' income.
d. Advances in the technology used to produce the product and a decrease in the price of a substitute good.


Definitions:

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The excessive use of natural resources, leading to their depletion or degradation, often faster than they can be replenished.

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An environmental scientist known for his work on the population, resources, and the environment.

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