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Find the equilibrium price and quantity pairs

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Reference no: EM131808621

Refer to the figure below, showing the market for coffee, to answer the following questions. Provide a detailed/summarized reasoning for a - f.

a) Find the equilibrium price and quantity pairs in the original setting.

b) What happens if the consumer reservation prices increase by $1.00?

c) What happens if there is a supply disruption in Colombia, a major coffee producer?

d) what happens if the government imposes a price ceiling of $1.00 on a cup of coffee?

e) What happens if both supply and demand shift? Provide an example of how such a development might happen.

f) Derive the functional forms for supply and demand lines for the original market conditions.

2431_Find the equilibrium price and quantity pairs.png

Reference no: EM131808621

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