How will the following sets of events affect equilibrium price and quantity for the product highlighted in italics? In each case, identify how both the
demand and supply curves shift.
a) Consumer preferences for spicy food increase at the same time as the wages paid to farmworkers drop, affecting the demand and supply of jalapeño peppers.
Market
Price:
Quantity:
Determinant(s):
b) There is a widespread consumer expectation that the price of tuna will rise at the same time as the number of tuna fishers drops.
Market
Price:
Quantity:
Determinant(s):
2 answers