Consider the following demand and supply schedules for ‘milk coffee’ in East West University cafeteria. Price (BDT per cup) Quantity demanded Quantity supplied 50 -----------------0 ---------------------- 800 40 ---------------- 200 ---------------------600 30 -----------------400 ----------------------400 20 ---------------600 ----------------------200 10 ---------------800 ----------------------100 0 ---------------1000 -----------------------0 For this, SKETCH only the effect on DEMAND-SUPPLY curves of milk coffee, separately for each part and EXPLAIN why the changes are occurring. a) The price of instant coffee powder (used to make milk coffee) rises. b) The incomes of average student falls and coffee is considered to be a normal good. c) Coffee is made with new robots
Consider the following demand and supply schedules for ‘milk coffee’ in East
West University cafeteria.
(BDT
per
cup) Quantity demanded Quantity supplied
50 -----------------0 ---------------------- 800
40 ---------------- 200 ---------------------600
30 -----------------400 ----------------------400
20 ---------------600 ----------------------200
10 ---------------800 ----------------------100
0 ---------------1000 -----------------------0
For this, SKETCH only the effect on DEMAND-SUPPLY
coffee, separately for each part and EXPLAIN why the changes are occurring.
a) The price of instant coffee powder (used to make milk coffee) rises.
b) The incomes of average student falls and coffee is considered to be a normal good.
c) Coffee is made with new robots.
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