Suppose the following information is available for the Coffee market in Finland for breakfast. Given the data answer the following questions and solve sub-parts as well: Price (Rupees per Coffee) Quantity demanded (Coffee cup per month) Quantity Supplied (Coffee cup per month) 1400 5000 15000 1200 7500 12000 1000 10000 10000 800 12500 7500 600 15000 6000 400 17500 3000 Plot the demand and supply curves and show the equilibrium price and quantity. Also, briefly explain if law of demand and supply holds true in this case. If the government fix the market price at 800 explain the impact it is going to create on the coffee market. Use the diagram to support your answer. Suppose if the price of tea decreases, elucidate the change it might cause on the coffee market given the consumption behavior and also illustrates the same through using 2-dimensional space. Find the price elasticity of supply using midpoint formula if the price of coffee increases from 600 to 800. Also, show the calculations and draw the curve explaining if it is elastic or inelastic.
Suppose the following information is available for the Coffee market in Finland for breakfast. Given the data answer the following questions and solve sub-parts as well: Price (Rupees per Coffee) Quantity demanded (Coffee cup per month) Quantity Supplied (Coffee cup per month) 1400 5000 15000 1200 7500 12000 1000 10000 10000 800 12500 7500 600 15000 6000 400 17500 3000 Plot the demand and supply curves and show the equilibrium price and quantity. Also, briefly explain if law of demand and supply holds true in this case. If the government fix the market price at 800 explain the impact it is going to create on the coffee market. Use the diagram to support your answer. Suppose if the price of tea decreases, elucidate the change it might cause on the coffee market given the consumption behavior and also illustrates the same through using 2-dimensional space. Find the price elasticity of supply using midpoint formula if the price of coffee increases from 600 to 800. Also, show the calculations and draw the curve explaining if it is elastic or inelastic.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 11SQ
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Question
Suppose the following information is available for the Coffee market in Finland for breakfast. Given the data answer the following questions and solve sub-parts as well:
|
Price (Rupees per Coffee) |
Quantity demanded (Coffee cup per month) |
Quantity Supplied (Coffee cup per month) |
|
1400 |
5000 |
15000 |
|
1200 |
7500 |
12000 |
|
1000 |
10000 |
10000 |
|
800 |
12500 |
7500 |
|
600 |
15000 |
6000 |
|
400 |
17500 |
3000 |
- Plot the demand and supply curves and show the
equilibrium price and quantity. Also, briefly explain iflaw of demand and supply holds true in this case. - If the government fix the market price at 800 explain the impact it is going to create on the coffee market. Use the diagram to support your answer.
- Suppose if the price of tea decreases, elucidate the change it might cause on the coffee market given the consumption behavior and also illustrates the same through using 2-dimensional space.
Find the price elasticity of supply using midpoint formula if the price of coffee increases from 600 to 800. Also, show the calculations and draw the curve explaining if it is elastic or inelastic.
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