he demand for butter is given by 120-4pd and the supply is 2ps-30, where pd and ps are, respectively the price paid by demanders and the price received by suppliers. a: Draw the demand and supply functions. b: Find the equilibrium quantity and price, and show them on the graph.  c: Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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The demand for butter is given by 120-4pd and the supply is 2ps-30, where pd and ps are, respectively the price paid by demanders and the price received by suppliers.

a: Draw the demand and supply functions.

b: Find the equilibrium quantity and price, and show them on the graph.

 c: Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity.

The demand for butter is given by 120-4pd and the supply is 2ps-30, where på and på are, respectively
the price paid by demanders and the price received by suppliers.
a. Draw the demand and supply functions.
b.
Find the equilibrium quantity and price, and show them on the graph.
c.
Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains
the same. Draw the new supply function, and find the new equilibrium price and quantity.
Transcribed Image Text:The demand for butter is given by 120-4pd and the supply is 2ps-30, where på and på are, respectively the price paid by demanders and the price received by suppliers. a. Draw the demand and supply functions. b. Find the equilibrium quantity and price, and show them on the graph. c. Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity.
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