EBK ESSENTIALS OF ECONOMICS
EBK ESSENTIALS OF ECONOMICS
8th Edition
ISBN: 8220103599832
Author: Mankiw
Publisher: Cengage Learning US
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Chapter 6, Problem 4PA

Sub part (a):

To determine

The impact of tax on the market for beer.

Sub part (b):

To determine

The impact of tax on the market for beer.

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a. Draw a supply-demand graph in the market for milk. Indicate equilibrium price and equilibrium quantity. b) in the same graph, indicate a price at which there is a surplus of milk. Show the surplus of milk in your graph.
1. Draw a labeled graph showing the supply and demand curves. Mark P₁ and Q₁ on your graph. Then show an increase in supply (as opposed to an increase in the quantity supplied.) Mark P2 and Q2 on your graph.
2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3) Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change. Ⓒ If the price of chicken increases, discuss the changes in the market demand for beef. What factor is this? Draw the graph and show the change.
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