1. Consider the following demand and supply model of the world tea market (in billions of pounds) Price per Pound Quantity Supplied Quantity Demanded Php0. 38 1, 500 525 0.37 1, 000 600 0.36 700 700 0.35 600 900 0.34 550 1, 200 a. Is there a shortage or surplus when the price is La.1 0.38? a.2 0.34? b. What are the equilibrium price and equilibrium quantity? P* Q* c. Graph the supply curve and the demand curve. Show how the equilibrium price and quantity can be found in the graph. Ensure the proper label.
1. Consider the following demand and supply model of the world tea market (in billions of pounds) Price per Pound Quantity Supplied Quantity Demanded Php0. 38 1, 500 525 0.37 1, 000 600 0.36 700 700 0.35 600 900 0.34 550 1, 200 a. Is there a shortage or surplus when the price is La.1 0.38? a.2 0.34? b. What are the equilibrium price and equilibrium quantity? P* Q* c. Graph the supply curve and the demand curve. Show how the equilibrium price and quantity can be found in the graph. Ensure the proper label.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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