1. The demand and supply schedules for pop in Vancouver are as follows: Price ($/pack of 2 bottles) Quantity demanded (thousands /week) Quantity supplied (thousands/ week) 2 280 0 3 240 30 4 200 60 5 160 90 6 120 120 7 80 140 8 40 160 9 0 180 a. (1) With the use of a demand and supply diagram, show the market equilibrium. b. (2) Now suppose that a fire destroys one-half of the pop producing factories. Supply decreases to one half shown in the above supply schedule. What are the new equilibrium price and quantity of pop? Show the new equilibrium in your diagram from part a). c. (1) Has there been a shift or a movement along the supply curve of pop in part b)? d. (2) As the pop factories destroyed by fire are rebuilt and gradually resume pop production, what will happen to the price of pop? The quantity of pop bought? The demand curve for pop?
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