Question: Examine the graph below and answer the questions that follow. Price of coffee R10!) R80 R60 R40 R20 100 200 300 400 500 Quantity ofcoee


Examine the graph below and answer the questions that follow. Price of coffee R10!) R80 R60 R40 R20 100 200 300 400 500 Quantity ofcoee A. Using D2 and 31 as the original curves and point H as the original equilibrium, fully describe the effects on the curves and equilibrium price and quantity if the price of tea (a substitute in consumption) increases ceterr's paribus. Assume a perfectly competitive market. Make continual reference to all curves, prices, quantities and points on the graph. (5 marks} B. Using D2 and S2 as the original curves and point F as the original equilibrium, fully describe the effects on the curves and equilibrium price and quantity if a price ceiling is implemented at R60 ceteris paribus. Make continual reference to all curves, prices, quantities and points on the graph
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