e) Suppose that after the imposition of the price floor, the demand in Shiva increases by 1.5 million kilos. Draw the new demand curve on the graph above, and label it D2. Plot only the endpoints of the curve above.

e) Suppose that after the imposition of the price floor, the demand in Shiva increases by 1.5 million kilos. Draw the new demand curve on the graph above, and label it D2. Plot only the endpoints of the curve above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph below depicts the market for rice in the country of Shiva.
Price ($)
10
8
4
2
0
2
4
6
8
10
Quantity per period (millions of kilos)
S.
1
12
D₂
S₂

e) Suppose that after the imposition of the price floor, the demand in Shiva increases by 1.5 million kilos. Draw the new demand curve
on the graph above, and label it D2. Plot only the endpoints of the curve above.

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