What is the new market equilibrium?

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 4.8P
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What is the new market equilibrium?
 
The new equilibrium price is
$
enter your response here
a bar and the new equilibrium quantity is
enter your response here
bars a day.
The table shows the demand and supply schedules for chocolate.
Quantity
demanded Quantity supplied
(chocolate bars per day)
220
260
300
340
380
Price
(dollars
per bar)
1.40
1.65
1.90
2.15
2.40
400
350
300
250
200
Now two events occur:
1. Excellent weather in cocoa-growing areas increases the quantity supplied of
chocolate by 50 bars a day at each price.
2. Doctors report that chocolate is good for you, which increases the quantity
demanded by 140 bars a day at each price.
What is the new market equilibrium?
The new equilibrium price is $ Type a bar and the new equilibrium quantity
is Type bars a day.
Transcribed Image Text:The table shows the demand and supply schedules for chocolate. Quantity demanded Quantity supplied (chocolate bars per day) 220 260 300 340 380 Price (dollars per bar) 1.40 1.65 1.90 2.15 2.40 400 350 300 250 200 Now two events occur: 1. Excellent weather in cocoa-growing areas increases the quantity supplied of chocolate by 50 bars a day at each price. 2. Doctors report that chocolate is good for you, which increases the quantity demanded by 140 bars a day at each price. What is the new market equilibrium? The new equilibrium price is $ Type a bar and the new equilibrium quantity is Type bars a day.
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