Explain the effect of the following situations on either the demand or supply (whether the demand or supply shifts to the left or right):
a) Population growth surges rapidly.
b) The prices of resources used in the production of good X increase.
c) The government is paying a $1.00 per unit subsidy for each unit of good produced.
d) The income of consumers of normal good X increases.
e) The income of consumers of inferior good Y decreases.
f) Farmers are deciding what crop to plant and learn that the price of corn has fallen relative to the price of cotton

Q&A Education