1)       A production pos

1)       A production pos

1)       A production possibilities table for two products, shoes and handbags, is found below. Usual assumptions regarding production possibilities are implied.Given the products below and the events that affect them, indicate what happens to demand or supply, and the equilibrium price and quantity in a competitive   market. Identify the determinant of demand or supply that causes the shift.(a)  Fast-food meals. The government imposes a significant tax on fast-food meals.(b)   Automobiles. Consumer incomes rise as the economy moves out of recession.

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