In problem 5, suppose that a flood destroys several potato farms and as a result supply decreases

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In problem 5, suppose that a flood destroys several potato farms and as a result supply decreases by 20 million bags a week at the same time as the new snack food comes onto the market. What is the new equilibrium price and quantity of chips?

Data from Problem 5

Suppose a new snack food comes onto the market and as a result the demand for potato chips decreases by 40 million bags per week.

Has there been a shift in or a movement along the supply curve of chips?

Has there been a shift in or a movement along the demand curve for chips?

What is the new equilibrium price and quantity of chips?

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Macroeconomics

ISBN: 9780137470822

14th Edition

Authors: Michael Parkin

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Question Posted: Apr 05, 2024 11:00 PM

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In problem 5, suppose that a flood destroys several potato farms and as a result supply decreases

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The new price is 70 cents a bag and the quantity is 100 million bags a week The sup...View the full answer

Macroeconomics

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