Describe what will happen to equilibrium price and quantity of each commodity given the corresponding hypothetical situations. Provide a graph and explain you answer. a. Coffee: The Philippine Medical Association announces that caffeine in coffee causes heart attack. b. National Bookstore’s Books: Management engages in a one-month cut-price book sale. c. Rice: Government imports rice from Thailand.
Describe what will happen to equilibrium price and quantity of each commodity given the corresponding hypothetical situations. Provide a graph and explain you answer. a. Coffee: The Philippine Medical Association announces that caffeine in coffee causes heart attack. b. National Bookstore’s Books: Management engages in a one-month cut-price book sale. c. Rice: Government imports rice from Thailand.
Chapter2: Economics: Eight Powerful Ideas
Section: Chapter Questions
Problem 17P
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Describe what will happen to
hypothetical situations. Provide a graph and explain you answer.
a. Coffee: The Philippine Medical Association announces that caffeine in coffee causes heart attack.
b. National Bookstore’s Books: Management engages in a one-month cut-price book sale.
c. Rice: Government imports rice from Thailand.
d. Pork: Foot and mouth disease (FMD) hits thousands of pigs resulting in a very high mortality rate.
e. Cigarettes: Taxes on cigarettes are increased from P 2.00 to P 3.00 per pack
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