Essay
Use the supply and demand model to explain what happens to the equilibrium price and the equilibrium quantity for pasta in the following cases:
(A)There is a large expansion in the number of firms producing pasta.
(B)It is widely publicized in the press that pasta isn't as healthful as previously thought.
(C)There is a sudden increase in the price of pasta flour,which is used to produce pasta.
(D)Pasta suddenly becomes popular because a movie idol promotes it in television commercials.
Correct Answer:

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(A) Supply shifts right,increasing the e...View Answer
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Correct Answer:
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