3. Consider the following supply and demand model of the World tea supply (inbillions of Kwacha)Price per KgKO.38КО.37КО.36КО.35КО.34| Quantity Supplied1500| Quantity Demanded52510006007007006009005501200a)Using graphs determine the equilibrium priceb)If there is a shortage or surplus when the price is KO.38 and KO.34,Calculate its size in billions of Kwacha and show that on the graph.

Market equilibrium is the situation in an economy where the 'supply of a product or service is equal…

3. Consider the following supply and demand model of the World tea supply (in billions of Kwacha) Price per Kg | Quantity Supplied 1500 1000 | Quantity Demanded 525 К.38 КО.37 600 КО.36 КО.35 КО.34 700 600 700 900 | 1200 550 a) Using graphs determine the equilibrium price b) If there is a shortage or surplus when the price is KO.38 and KO.34, Calculate its size in billions of Kwacha and show that on the graph.

3. Consider the following supply and demand model of the World tea supply (in billions of Kwacha) Price per Kg | Quantity Supplied 1500 1000 | Quantity Demanded 525 К.38 КО.37 600 КО.36 КО.35 КО.34 700 600 700 900 | 1200 550 a) Using graphs determine the equilibrium price b) If there is a shortage or surplus when the price is KO.38 and KO.34, Calculate its size in billions of Kwacha and show that on the graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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