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The table below shows the market for probiotic yoghurt in Canada. 1 2 3 4 5 6 Price ($) per carton Quantity Demanded (1) Quantity Supplied (1) Quantity Demanded (2) Quantity Demanded (3) Quantity Supplied (2) 110 1.75 100 50 105 2.00 95 60 100 2.25 90 70 95 2.50 85 80 90 2.75 80 90 85 3.00 3.25 75 70 100 80 110 a. Suppose the price of a complementary product were to increase causing the demand to change by 20. Show the new demand in column 4 in the table above. b. The new equilibrium price is $ and quantity is c. Suppose that instead the average income were to increase (and probiotic yoghurt is a normal product) causing the demand to change by 10. Show the new demand in column 5 in the table above. d. The new equilibrium price is $ and quantity is e. Suppose that instead the price of factors of production were to decrease causing the supply to change by 35. Show the new supply in column 6 in the table above. f. Assuming the original quantity demanded in column 2, the new equilibrium price is $ and quantity is

The table below shows the market for probiotic yoghurt in Canada. 1 2 3 4 5 6 Price ($) per carton Quantity Demanded (1) Quantity Supplied (1) Quantity Demanded (2) Quantity Demanded (3) Quantity Supplied (2) 110 1.75 100 50 105 2.00 95 60 100 2.25 90 70 95 2.50 85 80 90 2.75 80 90 85 3.00 3.25 75 70 100 80 110 a. Suppose the price of a complementary product were to increase causing the demand to change by 20. Show the new demand in column 4 in the table above. b. The new equilibrium price is $ and quantity is c. Suppose that instead the average income were to increase (and probiotic yoghurt is a normal product) causing the demand to change by 10. Show the new demand in column 5 in the table above. d. The new equilibrium price is $ and quantity is e. Suppose that instead the price of factors of production were to decrease causing the supply to change by 35. Show the new supply in column 6 in the table above. f. Assuming the original quantity demanded in column 2, the new equilibrium price is $ and quantity is

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 9QP
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Answer question a, b, d, and e

The table below shows the market for probiotic yoghurt in Canada. 1 2 3 4 5 6 Price ($) per carton Quantity Demanded (1) Quantity Supplied (1) Quantity Demanded (2) Quantity Demanded (3) Quantity Supplied (2) 110 1.75 100 50 105 2.00 95 60 100 2.25 90 70 95 2.50 85 80 90 2.75 80 90 85 3.00 3.25 75 70 100 80 110 a. Suppose the price of a complementary product were to increase causing the demand to change by 20. Show the new demand in column 4 in the table above. b. The new equilibrium price is $ and quantity is c. Suppose that instead the average income were to increase (and probiotic yoghurt is a normal product) causing the demand to change by 10. Show the new demand in column 5 in the table above. d. The new equilibrium price is $ and quantity is e. Suppose that instead the price of factors of production were to decrease causing the supply to change by 35. Show the new supply in column 6 in the table above. f. Assuming the original quantity demanded in column 2, the new equilibrium price is $ and quantity is
Transcribed Image Text:The table below shows the market for probiotic yoghurt in Canada. 1 2 3 4 5 6 Price ($) per carton Quantity Demanded (1) Quantity Supplied (1) Quantity Demanded (2) Quantity Demanded (3) Quantity Supplied (2) 110 1.75 100 50 105 2.00 95 60 100 2.25 90 70 95 2.50 85 80 90 2.75 80 90 85 3.00 3.25 75 70 100 80 110 a. Suppose the price of a complementary product were to increase causing the demand to change by 20. Show the new demand in column 4 in the table above. b. The new equilibrium price is $ and quantity is c. Suppose that instead the average income were to increase (and probiotic yoghurt is a normal product) causing the demand to change by 10. Show the new demand in column 5 in the table above. d. The new equilibrium price is $ and quantity is e. Suppose that instead the price of factors of production were to decrease causing the supply to change by 35. Show the new supply in column 6 in the table above. f. Assuming the original quantity demanded in column 2, the new equilibrium price is $ and quantity is
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