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The popular and financial press regularly report on economic events, but the description is usually quite different from the theoretical model provided in a microeconomics textbook. This problem set provides an opportunity to practice supply and demand analysis using excerpts from articles published in the Wall Street Journal.
In each of the first 12 twelve problems, there is a shift in either the demand or supply curve, or an imposed price ceiling or floor. For those problems where the supply or demand curve shifts, draw in the new curve and insert arrows to indicate the change in price and quantity. In your explanation, identify the factor(s) that caused the curve to shift (Baye and Prince term these “shifters”) and why the curve shifted as it did.
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