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Changes in Market

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5. How would each of the following changes affect the market for sugar? (I think these are Supply and Demand graphs)
a. Development of a new zero-calorie sweetener.
b. An increase in the demand for milk.
c. A cut in the wages of farm workers.

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Solution Summary

The key determinants of demand and the changes in market are discussed in the solution.

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5. How would each of the following changes affect the market for sugar? (I think these are Supply and Demand graphs)

The law of demand states that as the price goes up, the quantity demanded goes down, other things constant. An alternative way of saying the same thing is that price and quantity demanded are inversely related, so the demand curve slopes downward to the right.

Thus the key ...

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