The following table models the supply and demand of a specialty coffee:Price per poundPounds supplied (in thousands)Pounds demanded (in thousands)$8816$9914$101111$11139$12167Over time, the demand for this specialty coffee ebbs as competing coffees enter the market. As a result, the demand curve shifts down by five thousand pounds at all price points. What is the new equilibrium price per pound?

Answered: The following table models the supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table models the supply and demand of a specialty coffee:

Price per pound	Pounds supplied (in thousands)	Pounds demanded (in thousands)
$8	8	16
$9	9	14
$10	11	11
$11	13	9
$12	16	7

Over time, the demand for this specialty coffee ebbs as competing coffees enter the market. As a result, the demand curve shifts down by five thousand pounds at all price points. What is the new equilibrium price per pound?

Expert Solution

Step 1

Demand curve is the downward sloping curve.

Supply curve is the upward sloping curve.

Equilibrium is where the quantity demanded is equal to quantity supplied.

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