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

تمرين 17

Sometimes economists are not very careful when they draw supply and demand curves to state clearly whether the price on the vertical axis is a relative (real) price or a nominal price. How would a pure inflation (in which all prices rise together) affect the following:
1. A supply and demand curve diagram that has relative price on the vertical axis?
2. A supply and demand curve diagram that has nominal price on the vertical axis?