Use the graph to answer the questions below for the market for t-shirts.

Fill in the blank (copy and paste to a separate word file):
a. What is the market price? ______ market quantity? _______.
b. On the graph, which price shows excess demand? _______.
c. An increase in quantity demanded would be a movement from point (a) to point ___.

Suppose there is a sale on jeans. What happens to the market equilibrium (price and quantity)? Be sure to use the concept of shifting supply or demand and how jeans affect the market for t-shirts.
If t-shirts are a normal good, what happens if income increases? Give some examples of inferior goods.

Suppose the price of t-shirts decreases by 30% and quantity demanded increases by 60%, calculate the price elasticity of demand. Is this considered inelastic or elastic? Explain

Why Choose US

Unlimited Free Revisions
find the cost of your paper
Is this question part of your assignment?
Place order
Posted on May 30, 2016Author TutorCategories Question, Questions