Using the table in Problem 1, suppose the demand for boxed lunches falls such that Q is reduced by six lunches per day at each price. 

a. Describe two factors that could generate this change in demand.

b. What is the new equilibrium price and quantity? What is the new value of economic surplus at this equilibrium?

Data given in Table 1

Transcribed Image Text:

Q¹ 0 0 4 8 12 16 20 24 28 32 36 Boxed Lunches Per Day P 0 1 2 3 4 5 6 7 8 9 10 & 20 18 16 14 12 10 8 6 4 2 0