Reference no: EM133125015

Consider the following demand and supply schedules for 'milk coffee' in East West University cafeteria. Plot the demand curve and the supply curve for milk coffee in East West University. Show the equilibrium point E', equilibrium price. P' and equilibrium quantity, 0" in the graph. Calculate the value of the consumer surplus and producer surplus at equilibrium. What will he the effects on the milk coffee market if a price is set at EDT 40'? Calculate and show on the plot in part a. For parts d to i, SKETCH only the effect on DEMAND-SUPPLY curves of milk culfee, separately for each part and EXPLAIN why the changes are occurring. The price of instant coffee powder {used to make milk coffee} rises. The incomes of average student falls and coffee is considered to be a normal good. Coffee is made with new robots. It is advertised in Prothom Ale newspaper that drinking coffee leads to high risk of diabetes. The price of milk tea in the cafeteria increases. Tax of 3 taka is imposed on coffee production and number students getting admitted to the university increases.