D Question 58 Explain which direction the below referenced s

D Question 58 Explain which direction the below referenced supply or demand curve will shift AND comment on the impact of the shift on equilibrium price and quantity. a) John, who is a clothing producer, now has to pay more for cotton, an input good for his clothing. b) Nancy recently found out she is getting a $1,000 raise this year. c) Sharon decides to switch from a Mac to a PC because of her friend\'s recommendations. Paragraph

Solution

a) With the increase in price of an input the cost of manufacturing increases which reduces supply and hence the quantity supplied decreases which makes upward movement on supply curve thereby increasing price and reduced quantity demanded
b) With the increase in income, consumers would demand more and hence the quantity demand curve shifts to right
c) As the consumer preference changes the demand curve would shift to left