Consider the market for home improvements. If the cost of wood increases sharply, then the (demand for/ supply of) home improvements will (increase / decrease). This is depicted in diagram (A, B, C, D). The effect on equilibrium price will be (an increase / a decrease) and the effect on equilibrium quantity will be (an increase / a decrease). (A) (C) S S₁ D₂ D₁ S2 0 (B) (D) S D₁ D₂ S2 S₁ D Q

Consider the market for home improvements. If the cost of wood increases sharply, then the (demand for/ supply of) home improvements will (increase / decrease). This is depicted in diagram (A, B, C, D). The effect on equilibrium price will be (an increase / a decrease) and the effect on equilibrium quantity will be (an increase / a decrease). (A) (C) S S₁ D₂ D₁ S2 0 (B) (D) S D₁ D₂ S2 S₁ D Q

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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