Think
about a product that you have purchased recently (e.g. soda, diapers,
takeout meals, milk, shoes, manicure/pedicure, video game, etc.).
Explain how the law of demand affected your purchase. Give specific
examples of how the determinants of demand and supply affect this
product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and
the supply curve when any of these determinants change? Give examples of
scenarios that would cause a change in demand versus a movement along
the same demand curve and supply curve for this product. Discuss the new
equilibrium price and quantity that result from these changes. Can you
demonstrate some of these changes graphically?
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