Here is a quick piece about market equilibrium as well as elasticity of supply and demand. Mitt Romney merchandise is now in the clearance section of stores with a 75% discount on the original price. Click here to see the original article.
Show how the loss of the election is likely to affect the market for Mitt Romney merchandise. You need to consider the following:
- the direction of the shift of demand (easy)
- the likely elasticity of supply
- the change in the elasticity of demand
Answer the above and draw a diagram shoing the new likely equilibrium.
I will post the answers after the break......
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