6. Consider problem 5. Suppose that there is a drought in Sri Lanka that reduces the supply of tea by 400 billion pounds at every price. Suppose demand does not change.

a. Write down in a table the new supply schedule for tea.

b. Find the new equilibrium price and the new equilibrium quantity. Explain how the market adjusts to the new equilibrium.

c. Graph the new supply curve along with the old supply curve and the demand curve.

d. Show the change in the equilibrium price and the equilibrium quantity on the graph.

e. Did the equilibrium quantity change by more or less than the change in supply? Show how you arrived at your answer using both the table and the supply and demand diagram that you drew.