Homework Answers
a)
With the increase in prices of oil, the cost of production increases which shifts the supply curve to left
b)
With the increase in size of working population, the supply curve shifts to right, causing the equilibrium price to reduce and equilibrium quantity to increase
c)
With the long term job, the productivity increases which shifts supply and demand to right causing the equilibrium price to remain same or little lower with increased quantity.
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Need detailed explanations for short-run
and long-run equilibrium.
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