84D5 10 15 20 25 30 35 40 45 50 55 60Soya 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 ofwhat 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?EquilibriumSEquilibrium quantity16O40Activate Windows 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 thosepoints on the edge of the graphing area.0Price per kilo8222 223224201612BS8D Toolsline 4Activate Windows

Supply is defined as the quantity that is supplied by the producer in the economy. If the price of a…

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4) Suppose a market starts in equilibrium; then we observe a decrease in supply and a decrease in demand simultaneously. What can we say about the new equilibrium? Illustrate.
USE TABLE #1: For the market for electric automobiles, the equilibrium price is $ ________________ and the equilibrium quantity is___________ . (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).
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10 If the supply curve shifts right and the demand curve remains unchanged price increases; quantity increases price decreases; quantity increases price increases; quantity increases, decreases or is unchanged price increases; quantity decreases
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Quantity supplied will….
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