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Here are the impacts of each event on the equilibrium price and quantity of hot chocolate: a) An increase in the price of marshmallows (an input into hot chocolate): This will cause the supply curve of hot chocolate to shift left, increasing the equilibrium price and decreasing the equilibrium quantity as producers face higher costs. b) A cold winter causes an increase in demand: The demand curve will shift right, increasing both the equilibrium price and quantity as consumers want more hot chocolate du

Author

irsa

Language

EN