Q1: Answer the following questions with the help of the table that shows the demand and supply for potato chips: Price (cents per bag) Quantity demanded (millions of bags a week) Quantity supplied (millions of bags a week) 40 170 90 50 160 100 60 150 110 70 140 120 80 130 130 90 120 140 100 110 150 110 100 160 suppose a new snack food comes onto the market and as a result the demand for potato chips decreases by 40 million bags per week. d. Has there been a shift in or a movement along the demand curve for chips? e. What is the new equilibrium price and quantity of chips? suppose that a flood destroys several potato farms and as a result supply decreases by 20 million bags a week at the same time as the new snack food comes onto the market. f. What is the new equilibrium price and quantity of chips?
Q1: Answer the following questions with the help of the table that shows the demand and supply for potato chips: Price (cents per bag) Quantity demanded (millions of bags a week) Quantity supplied (millions of bags a week) 40 170 90 50 160 100 60 150 110 70 140 120 80 130 130 90 120 140 100 110 150 110 100 160 suppose a new snack food comes onto the market and as a result the demand for potato chips decreases by 40 million bags per week. d. Has there been a shift in or a movement along the demand curve for chips? e. What is the new equilibrium price and quantity of chips? suppose that a flood destroys several potato farms and as a result supply decreases by 20 million bags a week at the same time as the new snack food comes onto the market. f. What is the new equilibrium price and quantity of chips?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Q1: Answer the following questions with the help of the table that shows the demand and supply for potato chips:
|
|
Quantity demanded (millions of bags a week) |
Quantity supplied (millions of bags a week) |
|
40 |
170 |
90 |
|
50 |
160 |
100 |
|
60 |
150 |
110 |
|
70 |
140 |
120 |
|
80 |
130 |
130 |
|
90 |
120 |
140 |
|
100 |
110 |
150 |
|
110 |
100 |
160 |
suppose a new snack food comes onto the market and as a result the demand for potato chips decreases by 40 million bags per week.
d. Has there been a shift in or a movement along the demand curve for chips?
e. What is the new equilibrium price and quantity of chips?
- suppose that a flood destroys several potato farms and as a result supply decreases by 20 million bags a week at the same time as the new snack food comes onto the market.
f. What is the new equilibrium price and quantity of chips?
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