Explain how cases affect the market demand curve for a ‘normal’ good (for each one of the cases below indicate if the demand curve shifts to the right, left, or no shift).

Explain how cases affect the market demand curve for a ‘normal’ good (for each one of the cases below indicate if the demand curve shifts to the right, left, or no shift).

3. How will the following cases affect the market supply curve of a good (For each one of the cases indicate if the supply curve shifts to the right, left or no shift).
(a) The cost of raw materials fall
(b) Alternative products (in supply) become less profitable
(c) The price of the good decreases
(d) Firms anticipate that the price of the good is about to rise

4. Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?

5. The table below shows the amount of demand and supply for Model 3 Tesla’s
A) What is the equilibrium price and quantity?
B) Explain how you determined the fair equilibrium price
C) Evaluate how would a shortage of a critical component reducing the quantity supplied would affect the equilibrium price of Tesla’s

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