assign 1.2
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1) Shift the curve to show what will occur in the milk industry if technological progress makes it cheaper and easier to produce milk.
- draw the market and label the initial price and quantity PE and QE,
- decide which group (consumers or producers) is affected most directly and immediately then shift the curve
- label the new price and quantity
- compare the new Price and Quantity with the initial price and quantity
2) Market for Tutoring services.
P
QD
QS
QS’
$5
100
20
10
80
40
15
60
60
20
40
80
25
20
100
- Graph the Demand and supply curve (make sure to label the graph properly)
- Show the equilibrium price and quantity
- Show on the graph the shortage and surplus areas
- Assume baby-sitting cost went down, and the supply increased by 40 hours at each price.
- Show the new supply table in the provided space (Qs’)
- Graph the new supply curve and show the new equilibrium
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