The graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. Label the curve 1. Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 40 million bags a week at each price. Label the curve 2. Draw a point at the new equilibrium price and quantity following both events. How do the equilibrium price and equilibrium quantity change when the increase in demand is greater than the decrease in supply? The equilibrium price and the equilibrium quantity A. falls; decreases; B. rises; decreases; C. falls; increases; OD. rises; increases; How do the equilibrium price and equilibrium quantity change when the increase in demand is less than the decrease in supply? 115- 105- 95- 85- 75- 65- 55- Price (cents per bag) Do Sb C 45- 85 95 105 115 125 135 145 155 165 175 185 195 Quantity (millions of bags per week) >>> Draw only the objects specified in the question.

The graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. Label the curve 1. Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 40 million bags a week at each price. Label the curve 2. Draw a point at the new equilibrium price and quantity following both events. How do the equilibrium price and equilibrium quantity change when the increase in demand is greater than the decrease in supply? The equilibrium price and the equilibrium quantity A. falls; decreases; B. rises; decreases; C. falls; increases; OD. rises; increases; How do the equilibrium price and equilibrium quantity change when the increase in demand is less than the decrease in supply? 115- 105- 95- 85- 75- 65- 55- Price (cents per bag) Do Sb C 45- 85 95 105 115 125 135 145 155 165 175 185 195 Quantity (millions of bags per week) >>> Draw only the objects specified in the question.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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