Cups of Coffee $6 $5 $4 $3 Demand $2 Osupply $1 $0 Quantity 1. According to the graph above, what is the equilibrium price? 2. According to the graph above, what is the equilibrium quantity? 3. If the price is $5, how many cups of coffee will consumers wish to purchase? 4. If the price is $5, how many cups of coffee will producers wish to sell? 5. Will this result in a surplus or shortage of cups of coffee? 6. If the price is $1, how many cups of coffee will consumers wish to purchase? 7. If the price is $1, how many cups of coffee will producers wish to sell? 8. Will this result in a surplus or shortage of cups of coffee? Price 001

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need help with 7 and 8
Directions: Use the graphs to answer the questions that follow.
Cups of Coffee
$6
$5
$4
$3
"Demand
$2
Supply
$1
$0
Quantity
According to the graph above, what is the equilibrium price?
2. According to the graph above, what is the equilibrium quantity?
3. If the price is $5, how many cups of coffee will consumers wish to purchase?
4. If the price is $5, how many cups of coffee will producers wish to sell?
5. Will this result in a surplus or shortage of cups of coffee?
6. If the price is $1, how many cups of coffee will consumers wish to purchase?
7. If the price is $1, how many cups of coffee will producers wish to sell?
8. Will this result in a surplus or shortage of cups of coffee?
Price
Transcribed Image Text:Directions: Use the graphs to answer the questions that follow. Cups of Coffee $6 $5 $4 $3 "Demand $2 Supply $1 $0 Quantity According to the graph above, what is the equilibrium price? 2. According to the graph above, what is the equilibrium quantity? 3. If the price is $5, how many cups of coffee will consumers wish to purchase? 4. If the price is $5, how many cups of coffee will producers wish to sell? 5. Will this result in a surplus or shortage of cups of coffee? 6. If the price is $1, how many cups of coffee will consumers wish to purchase? 7. If the price is $1, how many cups of coffee will producers wish to sell? 8. Will this result in a surplus or shortage of cups of coffee? Price
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