Chapter 3, Problem 55P

Table 3.9 illustrates the market’s demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations:

1. The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price.
2. A new study says that eating cheese is good for your health, so that demand increases by $\text{2}0\%$ at every price.