Friday, July 23, 2010

Graph impact of increase in oil prices on AS/AD graph?

how would i graph this? please be specific. and explain.Graph impact of increase in oil prices on AS/AD graph?
AS would shift upward, each quantity of supplied good would now cost more


P


|AD....AS2....AS1


|..\....../......... /


|....\../........../


|...../.\......./


|./........\../


|........../..\


|_________\_______Q








AD would not move, but after the shift quantity demand would be reduced.Graph impact of increase in oil prices on AS/AD graph?
Ad shifts right, prices go up and equilibrium moves to the right then

No comments:

Post a Comment