1. Consider the following supply and demand model of the world tea market (in billions of pounds): Price per Pound Quantity Supplied Quantity Demanded $0.38 $0.37 $0.36 $0.35 $0.34 1. 1,500 1,000 700 600 550 525 600 700 900 1,200 4. Show how the equilibrium price and quantity can be found on the graph. 5. If there is a shortage or surplus at a price of $0.38, calculate its size in billions of pounds and show it on the graph.

1. Consider the following supply and demand model of the world tea market (in billions of pounds): Price per Pound Quantity Supplied Quantity Demanded $0.38 $0.37 $0.36 $0.35 $0.34 1. 1,500 1,000 700 600 550 525 600 700 900 1,200 4. Show how the equilibrium price and quantity can be found on the graph. 5. If there is a shortage or surplus at a price of $0.38, calculate its size in billions of pounds and show it on the graph.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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