Question 2 The following data relates to the market for jars of coffee in the UK. PRICE PER JAR DEMAND SUPPLY 5.00 60 150 4.50 65 140 4.00 70 130 3.50 75 120 3.00 80 110 2.50 85 100 2.00 90 90 1.50 95 80 1.00 100 70 1. Plot the Demand and Supply Curves and highlight the current market equilibrium price and quantity. (Make sure the diagram scales are correct and large enough to work with). 2. Explain and show what would happen if the jars were priced at £3 each. 3. Explain and show what would happen if the jars were priced at £1.50 each.
Question 2 The following data relates to the market for jars of coffee in the UK. PRICE PER JAR DEMAND SUPPLY 5.00 60 150 4.50 65 140 4.00 70 130 3.50 75 120 3.00 80 110 2.50 85 100 2.00 90 90 1.50 95 80 1.00 100 70 1. Plot the Demand and Supply Curves and highlight the current market equilibrium price and quantity. (Make sure the diagram scales are correct and large enough to work with). 2. Explain and show what would happen if the jars were priced at £3 each. 3. Explain and show what would happen if the jars were priced at £1.50 each.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer only 2 and 3, explain and show (illustrate) what would happen
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