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) It is advertised in Prothom Alo newspaper that drinking coffee leads to high risk of diabetes. b) The price of milk tea in the cafeteria increases. c) Tax of 3 taka is imposed on coffee production and number students getting admitted to the university increases.
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) It is advertised in Prothom Alo newspaper that drinking coffee leads to high risk of
diabetes.
b) The price of milk tea in the cafeteria increases.
c) Tax of 3 taka is imposed on coffee production and number students getting admitted to
the university increases.
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