Answer to Question #320592 in Macroeconomics for Rose

Question

In general, changes in price and quantity depend on the amount by which the

demand and supply curves shift, in which direction they shift and the shape of

each curve. With this statement in mind, illustrate by drawing a single graph the

new price and quantity at a new equilibrium when both curves shift to the right,

but the shift in the demand curve is larger than the shift in the supply curve.

Answer 1

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