a. Suppose the price of sugar decreases. Then, will there be a shortage or surplus in the tea leaf market? Explain with a diagram. b. Suppose there is an increase in the wage of tea farmers. Then, will there be a shortage or surplus in the tea market? Explain with a diagram. c. How will the market clearing price and the equilibrium quantity be affected by these changes? Explain in detail with diagram.

a. Suppose the price of sugar decreases. Then, will there be a shortage or surplus in the tea leaf market? Explain with a diagram. b. Suppose there is an increase in the wage of tea farmers. Then, will there be a shortage or surplus in the tea market? Explain with a diagram. c. How will the market clearing price and the equilibrium quantity be affected by these changes? Explain in detail with diagram.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 1WNG

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