Q3: Answer the following questions with the help of the table that shows the demand and supply for potato chips: a. What are the equilibrium price and equilibrium quantity of potato chips? b. If chips were 60 cents a bag, describe the situation in the market for potato chips and explain what would happen to the price of a bag of chips. suppose a new snack food comes onto the market and as a result the demand for potato chips decreases by 40 million bags per week. c. Has there been a shift in or a movement along the supply curve of chips?
Q3:
Answer the following questions with the help of the table that shows the
a. What are the
b. If chips were 60 cents a bag, describe the situation in the market for potato chips and explain what would happen to the price of a bag of chips.
- suppose a new snack food comes onto the market and as a result the demand for potato chips decreases by 40 million bags per week.
c. Has there been a shift in or a movement along the supply curve of chips?
d. Has there been a shift in or a movement along the demand curve for chips?
e. What is the new equilibrium price and quantity of chips?
- suppose that a flood destroys several potato farms and as a result supply decreases by 20 million bags a week at the same time as the new snack food comes onto the market.
f. What is the new equilibrium price and quantity of chips?
|
Price (cents per bag) |
Quantity demanded (millions of bags a week) |
Quantity supplied (millions of bags a week) |
|
40 |
170 |
90 |
|
50 |
160 |
100 |
|
60 |
150 |
110 |
|
70 |
140 |
120 |
|
80 |
130 |
130 |
|
90 |
120 |
140 |
|
100 |
110 |
150 |
|
110 |
100 |
160 |
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