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 40 million bags per week at each price. Label the curve. Draw a point at the new equilibrium price and quantity

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 40 million bags per week at each price. Label the curve. Draw a point at the new equilibrium price and quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

40 million bags per week at each price. Label the curve.

Draw a point at the new equilibrium price and quantity.

Price (cents per bag)
105-
So
95-
85-
75-
65-
55-
Do
45-
105
125
145
165
185
205
Quantity (millions of bags per week)
LO

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