Question

Instructions: In group of 2 or 3 students, discuss the following problems. Graph a D or S curve for each of the situations below and clearly show if there is a movement or shift of the curve. If there is a shift of the curve, write below the graph the factor shifting the curve. Clearly label your graphs and indicate the factor shifting the curves, 13. Suppose the demand and supply for milk are described by the following equations: Q -150 + 150P and Qa 600- 100P. Graph the S&D curve and determine the market equilibriunm, graphically and algebraically. Assume that dairy farmers receive a tax break that makes them offer 125 more gallons of milk per day at each price. Graph the new curve and determine the new market equilibrium, graphically and algebraically.

Answer 1

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