Macroeconomics 11th Edition by Michael Parkin

تمرين 12

Predicting Changes in Price and Quantity
In Problem, if a virus destroys potato crops and the quantity of potato chips produced decreases by 40 million bags a week at each price, how does the supply of chips change?
Problem
The demand and supply schedules for potato chips are
a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity.
b. If the price is 60i a bag, is there a shortage or a surplus, and how does the price adjust