Why are there two supply curves in Figure (a)? How does this illustrate "feedback" effects? Why would a partial equilibrium analysis of the effect of an increase in demand for tomatoes from D to D' give the wrong answer? 11eb5bc8_eb76_5722_bcf8_3b21c838fe9f_SM2615_00 Initially, the market for tomatoes is in equilibrium (at P1), as are the markets for tomato pickers, cucumbers, and cucumber pickers. An increase in demand for tomatoes disturbs these equilibria. Virtually all the supply and demand curves shift in the process of establishing a new general equilibrium.

Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

النسخة 12الرقم المعياري الدولي: 978-1133189022

Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

النسخة 12الرقم المعياري الدولي: 978-1133189022

تمرين 24

Why are there two supply curves in Figure (a)? How does this illustrate "feedback" effects? Why would a partial equilibrium analysis of the effect of an increase in demand for tomatoes from D to D' give the wrong answer?

Initially, the market for tomatoes is in equilibrium (at P1), as are the markets for tomato pickers, cucumbers, and cucumber pickers. An increase in demand for tomatoes disturbs these equilibria. Virtually all the supply and demand curves shift in the process of establishing a new general equilibrium.

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General equilibrium and partial equilibr...