Unformatted text preview: 70 cents-per-pack. c) The quantity demanded has decreased, creating an overabundance of gum which drives the price down to 30 cents-per-pack. d) If supply is reduced by 40 million packs a week, the price of gum will increase and the amount demanded will fall. e) If supply is reduced by 40 million packs a week and simultaneously the amount demanded increases by 40 million pack a week, the equilibrium quantity remains the same but price increases....
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This note was uploaded on 04/06/2008 for the course ECON 111 taught by Professor Farrant during the Spring '08 term at Dickinson.
- Spring '08