Consider the following supply and demand diagram for Tootsie Rolls.Note that the market is currently in equilibrium,with a price of P* and a quantity exchanged of Q*.
For each of the scenarios below,draw a picture that illustrates the impact on price and quantity exchanged.Explain each of your pictures by describing what is happening to the demand side of the market.
(a)The American Association of Chocolate Lovers designates the Tootsie Roll as its official candy.
(b)The Tootsie Roll Company computerizes their Tootsie Roll manufacturing plant,lowering unit costs of production.
Definitions:
Conformity
The process of adjusting one's behavior or thinking to match those of other people or a group standard.
Compliance
The act of conforming to a request or demand from others, often used in a psychological context to describe when a person changes their behavior in response to an explicit or implicit request.
Obedience
The act of following orders or directions from those in authority.
Stereotype
A commonly accepted yet simplified and rigid perception or conception of a specific kind of individual or object.
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