Consider the following
West University cafeteria.
(BDT
per
cup) ------ Quantity demanded ----- Quantity supplied
50 -----------------0 ---------------------- 800
40 ---------------- 200 ---------------------600
30 -----------------400 ----------------------400
20 ---------------600 ----------------------200
10 ---------------800 ----------------------100
0 ---------------1000 -----------------------0
a) Plot the demand curve and the supply curve for milk coffee in East West University. Show the equilibrium point E*,
b) Calculate the value of the
c) What will be the effects on the milk coffee market if a price is set at BDT 40? Calculate
and show on the plot in part a.
Step by step
Solved in 3 steps with 1 images
