Handout 1d - 5 Suppose there is an early frost in Colombia that kills much of the coffee crop Using the above diagram show what would happen to the

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Handout 1d – Supply and Demand at CSULB Spring 2007 Page 1 of 2 Consider the market for triple lattes at CSU-LB. Listed below are the market demand for students and faculty (demanders) and the market curve of the coffee providers on campus (suppliers). Price ($ per cup) Quantity Demanded Quantity Supplied 0.00 50 0 1.00 45 0 2.00 40 0 3.00 35 5 4.00 30 10 5.00 25 15 6.00 20 20 7.00 15 25 8.00 10 30 9.00 5 35 10.00 0 40 Triple Latte Market at CSU-LB 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 0 5 10 15 20 25 30 35 40 45 50 quantity (cups of coffee) price ($ per cup) 1. Plot both the market demand curve and the market supply curve for the triple latte market at CSU-LB in the above diagram.
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Handout 1d – Supply and Demand at CSULB Spring 2007 Page 2 of 2 2. Why won’t producers supply any triple lattes at $0.00 - $2.00? 3. What is the equilibrium price in the triple latte market? 4. What is the equilibrium quantity in the triple latte market?
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Unformatted text preview: 5. Suppose there is an early frost in Colombia that kills much of the coffee crop. Using the above diagram, show what would happen to the equilibrium price and quantity in the triple latte market at CSU-LB. 6. Suppose instead that the Surgeon General announces that coffee is linked to cancer. Using the above diagram, show what would happen to the equilibrium price and quantity in the triple latte market at CSU-LB. 7. Suppose instead that President F. King Alexander imposes a price ceiling of $4.00 for triple lattes at CSU-LB. What situation would occur in the triple latte market? Would this help consumers? 8. Suppose instead that President F. King Alexander imposes a price floor of $8.00 for triple lattes at CSU-LB. What situation would occur in the triple latte market? What would the President have to do to help the producers?...
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This note was uploaded on 04/18/2008 for the course ECON 100 taught by Professor Kasilwal during the Spring '07 term at CSU Long Beach.

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Handout 1d - 5 Suppose there is an early frost in Colombia that kills much of the coffee crop Using the above diagram show what would happen to the

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