The second step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.
b. decide whether the economic change being analyzed affects demand or supply.
c. draw a demand and supply model before the economic change took place.
d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
b. decide whether the economic change being analyzed affects demand or supply.
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