Assume the market for beer is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously a decrease in the population and beer producers expected the future price of beer to decrease.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

Question

Quizplus · Accepted Answer

The Answer of Assume the market for beer is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously a decrease in the population and beer producers expected the future price of beer to decrease.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

Assume the Market for Beer Is Initially in Equilibrium