Macroeconomics 11th Edition by Michael Parkin

Exercise 13

Predicting Changes in Price and Quantity
If the virus in Problem 1 hits just as the new dip in Problem 2 comes onto the market, how do the equilibrium price and equilibrium quantity of chips change?
Problem 1
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
Problem 2
In Problem, a new dip increases the quantity of potato chips that people want to buy by 30 million bags per week at each price.
a. Does the demand for chips changeDoes the supply of chips changeDescribe the change.
b. How do the equilibrium price and equilibrium quantity 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