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fter several years of decline, the market for handmade acoustic guitars is making a comeback. These guitars are usually made in small workshops employing rela- tively few highly skilled luthiers. Assess the impact on the equilibrium price and quantity of handmade acous- tic guitars as a result of each of the following events. In your answers indicate which curve(s) shift(s) and in which direction. a. Environmentalists succeed in having the use of Brazilian rosewood banned in the United States, forcing luthiers to seek out alternative, more costly woods. b. A foreign producer reengineers the guitar-making process and floods the market with identical guitars. c. Music featuring handmade acoustic guitars makes a comeback as audiences tire of heavy metal and alternative rock music.

fter several years of decline, the market for handmade acoustic guitars is making a comeback. These guitars are usually made in small workshops employing rela- tively few highly skilled luthiers. Assess the impact on the equilibrium price and quantity of handmade acous- tic guitars as a result of each of the following events. In your answers indicate which curve(s) shift(s) and in which direction. a. Environmentalists succeed in having the use of Brazilian rosewood banned in the United States, forcing luthiers to seek out alternative, more costly woods. b. A foreign producer reengineers the guitar-making process and floods the market with identical guitars. c. Music featuring handmade acoustic guitars makes a comeback as audiences tire of heavy metal and alternative rock music.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 10PA
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12. After several years of decline, the market for handmade acoustic guitars is making a comeback. These guitars are usually made in small workshops employing rela- tively few highly skilled luthiers. Assess the impact on the equilibrium price and quantity of handmade acous- tic guitars as a result of each of the following events. In your answers indicate which curve(s) shift(s) and in which direction. a. Environmentalists succeed in having the use of Brazilian rosewood banned in the United States, forcing luthiers to seek out alternative, more costly woods. b. A foreign producer reengineers the guitar-making process and floods the market with identical guitars. c. Music featuring handmade acoustic guitars makes a comeback as audiences tire of heavy metal and alternative rock music. d. The country goes into a deep recession and the income of the average American falls sharply.
Transcribed Image Text:12. After several years of decline, the market for handmade acoustic guitars is making a comeback. These guitars are usually made in small workshops employing rela- tively few highly skilled luthiers. Assess the impact on the equilibrium price and quantity of handmade acous- tic guitars as a result of each of the following events. In your answers indicate which curve(s) shift(s) and in which direction. a. Environmentalists succeed in having the use of Brazilian rosewood banned in the United States, forcing luthiers to seek out alternative, more costly woods. b. A foreign producer reengineers the guitar-making process and floods the market with identical guitars. c. Music featuring handmade acoustic guitars makes a comeback as audiences tire of heavy metal and alternative rock music. d. The country goes into a deep recession and the income of the average American falls sharply.
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