19) Consider the market for drinking water on a summer camping trip. The supply for water (in gallons) is Qs = 2 + 2P. There are two people on the camping trip, Tony and Khushbu. Tony's demand for drinking water is Qprony = 18 – 3P and Khushbu's demand is = 6 – P. a. What is the total demand for water on this trip? b. Graph supply and demand for drinking water and find the equilibrium price and quantity. c. Suppose some external factors cause the supply of water to shift to Qs = 12 + 2P. Graph this change and calculate the new equilibrium price and quantity.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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19) Consider the market for drinking water on a summer camping trip. The supply for water (in
gallons) is Qs = 2 + 2P. There are two people on the camping trip, Tony and Khushbu.
Tony's demand for drinking water is QDremy = 18 – 3P and Khushbu's demand is
= 6 – P.
a. What is the total demand for water on this trip?
b. Graph supply and demand for drinking water and find the equilibrium price and
quantity.
c. Suppose some external factors cause the supply of water to shift to Qs
= 12 + 2P. Graph this change and calculate the new equilibrium price and
quantity.
d. What is the price elasticity of demand for this price change?
%3|
Transcribed Image Text:19) Consider the market for drinking water on a summer camping trip. The supply for water (in gallons) is Qs = 2 + 2P. There are two people on the camping trip, Tony and Khushbu. Tony's demand for drinking water is QDremy = 18 – 3P and Khushbu's demand is = 6 – P. a. What is the total demand for water on this trip? b. Graph supply and demand for drinking water and find the equilibrium price and quantity. c. Suppose some external factors cause the supply of water to shift to Qs = 12 + 2P. Graph this change and calculate the new equilibrium price and quantity. d. What is the price elasticity of demand for this price change? %3|
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