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zhannawk [14.2K]
3 years ago
15

Consider the market for pens. Suppose that increased medical concerns over lead pencils have led schools to steer away from penc

il use in favor of pens. Moreover, the price of plastic, an important input in pen production, has dropped considerably.
On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens.

True or False: When both the demand and supply curves shift, you can always determine the effect on price and quantity without knowing the magnitude of the shifts.

Business
1 answer:
LiRa [457]3 years ago
4 0
Answer: False

Explanation:
Being able to determine the effect on price would have to be circumstantial
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