Sep 28, 2017 term paper 2

WHEN THE DEMAND FOR TOILET PAPER INCREASES, THE EQUILIBRIUM QUANTITY SOLD INCREASES. CONSUMERS…

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When the demand for toilet paper increases, the equilibrium quantity sold increases. Consumers are buying more, and producers are producing more.

a. How do producers receive the signal that they need to increase production to meet the new demand?

b. Does the increased production reflect an increase in supply, or an increase in the quantity supplied? Explain your answer, referring to (a).


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