Create a separate file for your answers to the followingquestions and then attach the file below. A.
Question:
Create a separate file for your answers to the followingquestions and then attach the file below.
A. Create a graph of a market for jalapeno peppers. Show the demand for peppers and the supply of peppers as oflate 2020. Show the equilibrium price as $5.30 and theequilibrium quantity as 500 million bushels.
B. Now on the graph, draw the results of major crop damagein early 2021 because of storms in Central America. Make theappropriate shifts and show the new equilibrium price and quantity.
C. The price of a bushel of peppers will _______ and thequantity of peppers sold will _______( Answer "increase" or"decrease") D. Now assume that people start eating inrestaurants again in spring 2021 such as Mexican restaurants. Show the changes that this would cause in your graph. E. As a result, pepper prices will _______ thequantity of peppers sold will _______(Answer "rise", "fall" or be"indeterminate) compared to the end of 2020.
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn