2. What causes Equilibrium prices to change?
Give examples.

An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. ... For any quantity, consumers now place a higher value on the good, and producers must have a higher price in order to supply the good; therefore, price will increase.

overnment is strong when they have the ability to persuade those they govern to believe government has enough power to force them or should be forcing them to do government’s will.

when enough of the citizenry do not believe government can force them or should force them to do its bidding, government has lost or will lose its strength and power to coerce.

when enough of the citizenry do believe government can force or should force them to do its bidding, they become passive at the least or actively pro-government and repeat government’s own rhetoric to pass on what they have been persuaded by government’s propaganda.

a true majority isn’t always needed to govern or to stop government. many times all that is needed is a strong minority. if a determined 30% of the population rises up against government in a concerted effort to bring it down, this size minority usually will succeed as long as those actively opposing the minority are less in force than the minority. so if 41% of the population sits at home watching tv rooting for one side or the other, they don’t matter. it’s the active parties who make a difference.

b. cronkite, a trusted television personality, declared that the war was unwinnable and told the american people that the government had better find a way out

even though it went against everything the news anchors typically stood for, cronkite voiced an opinion and took a stance, telling the us that there was no way they were going to win, the war was going to end in a stalemate.