4 5 10 15 20 25 30 35 40 45 50 55 60 Soya beans (millions of kilos) a) Suppose that due to a bad harvest the supply of soya beans is reduced by 50 percent. (The quantities at every price are one-half of what they are at present) Draw the new supply curve in the graph above b) As a result of the drop in supply, what are the new equilibrium price and quantity? Equilibrium price: $1 Equilibrium quantity 40
4 5 10 15 20 25 30 35 40 45 50 55 60 Soya beans (millions of kilos) a) Suppose that due to a bad harvest the supply of soya beans is reduced by 50 percent. (The quantities at every price are one-half of what they are at present) Draw the new supply curve in the graph above b) As a result of the drop in supply, what are the new equilibrium price and quantity? Equilibrium price: $1 Equilibrium quantity 40
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:8
4
D
5 10 15 20 25 30 35 40 45 50 55 60
Soya beans (millions of kilos)
a) Suppose that due to a bad harvest the supply of soya beans is reduced by 50 percent. (The quantities at every price are one-half of
what they are at present) Draw the new supply curve in the graph above.
b) As a result of the drop in supply, what are the new equilibrium price and quantity?
Equilibrium
S
Equilibrium quantity
16
O
40
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Transcribed Image Text:The graph below shows the market for soya beans:
Plot the two end points using the tool provided in the graphing area below. Plot only the end points of the curve and position those
points on the edge of the graphing area.
0
Price per kilo
8222 22
32
24
20
16
12
B
S8
D Tools
line 4
Activate Windows
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