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 1. Is there a shortage or a surplus when the price is $0.38? What about $0.34? 2. What are the equilibrium price and the equilibrium quantity? 3. Graph the supply curve and the demand curve.

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 1. Is there a shortage or a surplus when the price is $0.38? What about $0.34? 2. What are the equilibrium price and the equilibrium quantity? 3. Graph the supply curve and the demand curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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