Suppose the quantity supplied falls, relative to the values given in the table above, by 20 million pounds per month at prices above $5; at a price of $5 or less per pound, the quantity supplied becomes zero. Draw the new supply curve and show the new equilibrium price and quantity.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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Suppose the quantity supplied falls, relative to the values given in the table above, by 20 million pounds per month at prices above $5; at a price of $5 or less per pound, the quantity supplied becomes zero. Draw the new supply curve and show the new equilibrium price and quantity.

Problems 6-9 are based on the model of demand and supply for coffee as shown in Figure 3.10
"Changes in Demand and Supply". You can graph the initial demand and supply curves by using the
following values, with all quantities in millions of pounds of coffee per month:
Price Quantity demanded Quantity supplied
$3
4
5
6
7
8
9
40
35
30
25
20
15
10
10
15
20
25
30
35
40
Transcribed Image Text:Problems 6-9 are based on the model of demand and supply for coffee as shown in Figure 3.10 "Changes in Demand and Supply". You can graph the initial demand and supply curves by using the following values, with all quantities in millions of pounds of coffee per month: Price Quantity demanded Quantity supplied $3 4 5 6 7 8 9 40 35 30 25 20 15 10 10 15 20 25 30 35 40
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