The demand for bacon is given by Q d=70-3p and the supply is Q s=2p-30. (a). Draw the demand and supply functions. Find the equilibrium quantity and price, and show them on the graph.(b). Suppose due to increased health awareness the demand changes to 50-3p. The supply remains the same. Draw the new demand function on the same graph, and find the new equilibrium price and quantity. Has the demand increased or decreased? How did the equilibrium price and quantity change compared to part a.? The demand for bacon is given by Qd=70-3p and the supply is Q³=2p-30.a. Draw the demand and supply functions. Find the equilibrium quantity and price, and showthem on the graph.b.Suppose due to increased health awareness the demand changes to 50-3p. The supplyremains the same. Draw the new demand function on the same graph, and find the newequilibrium price and quantity. Has the demand increased or decreased? How did theequilibrium price and quantity change compared to part a.?

An equilibrium price is the result of balancing demand and supply. Prices have a tendency to return…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The demand for bacon is given by Q d=70-3p and the supply is Q s=2p-30.

(a). Draw the demand and supply functions. Find the equilibrium quantity and price, and show them on the graph.

(b). Suppose due to increased health awareness the demand changes to 50-3p. The supply remains the same. Draw the new demand function on the same graph, and find the new equilibrium price and quantity. Has the demand increased or decreased? How did the equilibrium price and quantity change compared to part a.?

The demand for bacon is given by Qd=70-3p and the supply is Q³=2p-30.
a. Draw the demand and supply functions. Find the equilibrium quantity and price, and show
them on the graph.
b.
Suppose due to increased health awareness the demand changes to 50-3p. The supply
remains the same. Draw the new demand function on the same graph, and find the new
equilibrium price and quantity. Has the demand increased or decreased? How did the
equilibrium price and quantity change compared to part a.?

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