The diagram below shows the demand and supply for hamburgers on your college campus.
a. Suppose your college announces a new plan to improve student life: Any time you buy a hamburger anywhere on campus, you can bring your receipt to the administration building and trade it for a $5 bill. How much does the price of hamburgers change?
b. Suppose instead that the college announces a different plan: It will pay $5 per hamburger to anyone who sells hamburgers on campus. How much does the price of hamburgers change?
c. Which plan is better for the students who like to eat hamburgers? Explain yourreasoning.

Transcribed Image Text:

P $11 10 7 4 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16