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Suppose There Is a Linear Downward-Sloping Demand Curve and a Linear

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Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good.The price of a substitute good increases and the price of an input to production also increases.Graph the original demand and supply curves,and the curves after the substitute good and input prices increase.How will the equilibrium price change after the substitute and input prices increase?


Definitions:

Classical Conditioning

A learning framework in which the recurrent association of two stimuli results in a response that, while initially evoked by the second stimulus, is subsequently evoked by the first stimulus alone.

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A mental state or disposition that reflects expectations of favorable outcomes or an optimistic viewpoint.

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Models made of plastic and other materials designed to simulate human physical responses in vehicle crash testing to improve safety.

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The phenomenon where a belief or a statement is more likely to be accepted as true the more it is repeated or encountered, regardless of its actual validity.

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