Econ201_CH4

Econ201_CH4 - Darrin Wright Due. September 21, 2011...

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Darrin Wright Due. September 21, 2011 Price(dollars per box) Quantity demanded Quantity supplied 13.00 1,600 1,200 14.00 1,500 1,300 15.00 1,400 1,400 16.00 1,300 1,500 17.00 1,200 1,600 18.00 1,100 1,700 Table 1 shows the demand and supply schedules for boxes of chocolates in an average week. Use this information to work 5 and 6. 5. If the price of chocolates is $17.00 a box, describe the situation in the market. Explain how market equilibrium is restored. It is more quantity supplied than quantity demanded. It is the same quantity of demand increase as supply increase (both have 100 intervals). When quantity demanded decreases and quantity supplied increases, this causes a lower equilibrium price. 6. During Valentine’s week, more people buy chocolate and chocolatiers offer their chocolates in special red boxes, which cost more to produce than the everyday box. Set out the three-step process of analysis and show on a graph the adjustment process to the new equilibrium. Describe the changes in the equilibrium price and the equilibrium quantity. 1. With Valentine’s Day approaching, the demand for chocolate changes and the supply for
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This note was uploaded on 11/22/2011 for the course ECON 201 taught by Professor Chen during the Fall '11 term at N.C. A&T.

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Econ201_CH4 - Darrin Wright Due. September 21, 2011...

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