b. How many cans of soda are bought and sold each day? What is the equilibrium price of soda? Equilibrium quantity: Equilibrium price: $ c. What is the price elasticity of demand for soda at the equilibrium price? cans d. What is the price elasticity of supply for soda at the equilibrium price? OIt will increase. per can e. If the price of one of the inputs used to make soda increases, then what will happen to consumers' total expenditure on soda? It will decrease. It will remain unchanged.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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b. How many cans of soda are bought and sold each day? What is the equilibrium price of soda?
Equilibrium quantity:
Equilibrium price: $
c. What is the price elasticity of demand for soda at the equilibrium price?
cans
d. What is the price elasticity of supply for soda at the equilibrium price?
It will increase.
per can
e. If the price of one of the inputs used to make soda increases, then what will happen to consumers' total expenditure on soda?
It will decrease.
It will remain unchanged.
Transcribed Image Text:b. How many cans of soda are bought and sold each day? What is the equilibrium price of soda? Equilibrium quantity: Equilibrium price: $ c. What is the price elasticity of demand for soda at the equilibrium price? cans d. What is the price elasticity of supply for soda at the equilibrium price? It will increase. per can e. If the price of one of the inputs used to make soda increases, then what will happen to consumers' total expenditure on soda? It will decrease. It will remain unchanged.
Suppose the daily demand for soda is given by P=4-(2/3)Q and the daily supply of soda is given by P= 1+ (1/3)Q, where P is the
dollar price of a can of soda and Q is the number of cans of soda (in thousands).
a. Sketch the demand curve and the supply curve.
Instructions: Use the tools provided to draw the demand and supply curves. Plot each end point (4 points total).
Ⓡ
Price ($/can)
6
LO
5
+
3
2
1
0
Market for Soda
1 2 3
4 5 6
Quantity (1,000s of cans per day)
Tools
/
Demand
/
Supply
Transcribed Image Text:Suppose the daily demand for soda is given by P=4-(2/3)Q and the daily supply of soda is given by P= 1+ (1/3)Q, where P is the dollar price of a can of soda and Q is the number of cans of soda (in thousands). a. Sketch the demand curve and the supply curve. Instructions: Use the tools provided to draw the demand and supply curves. Plot each end point (4 points total). Ⓡ Price ($/can) 6 LO 5 + 3 2 1 0 Market for Soda 1 2 3 4 5 6 Quantity (1,000s of cans per day) Tools / Demand / Supply
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