Figure 1 below shows the demand and supply of coffee at a local café. Study the graph and then answer Q.2.2.1 to Q.2.2.5 by completing each sentence to make it correct. Figure 1 Price per unit (Rand) D 26 S1 22 18 10 80 90 100 120 140 Quantity (units) per week
Figure 1 below shows the demand and supply of coffee at a local café. Study the graph and then answer Q.2.2.1 to Q.2.2.5 by completing each sentence to make it correct. Figure 1 Price per unit (Rand) D 26 S1 22 18 10 80 90 100 120 140 Quantity (units) per week
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Figure 1 below shows the demand and supply of coffee at a local café.
Study the graph and then answer Q.2.2.1 to Q.2.2.5 by completing each
sentence to make it correct.
Figure 1
Price per unit (Rand)
S
26
S1
22
18
10
80 90 100
120
140
Quantity (units) per week
Transcribed Image Text:Q.2.2.1 Assuming no government intervention and considering the original
demand and supply curves (D and S), at a price of R10 there is an
of 40 cups of coffee.
Q.2.2.2 The shift of the supply curve to S1 indicates an
in supply
and a new equilibrium quantity of
cups of coffee.
Q.2.2.3 At a price of R22 and assuming no government intervention, the
is 90 cups of coffee.
Q.2.2.4 Considering curves D and S, if government intervenes and sets a price
of R26, this is called a
and will result in a
of 40 cups of coffee.
Q.2.2.5 Consider demand (D) and supply (S1). If government sets a price of
R18 for a cup of coffee, then the
will be 140 cups of coffee.
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