The demand for butter is given by 120-4pd and the supply is 2ps-30, where pd and ps are, respectively the price paid by demanders and the price received by suppliers.a: Draw the demand and supply functions.b: Find the equilibrium quantity and price, and show them on the graph. c: Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity. The demand for butter is given by 120-4pd and the supply is 2ps-30, where på and på are, respectivelythe price paid by demanders and the price received by suppliers.a. Draw the demand and supply functions.b.Find the equilibrium quantity and price, and show them on the graph.c.Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remainsthe same. Draw the new supply function, and find the new equilibrium price and quantity.

Given information: The market of Butter: Qd = 120 - 4Pd --------> demand for butter Qs = 2Ps - 30…

Answered: he demand for butter is given by…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 5TY

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The demand for butter is given by 120-4p_d and the supply is 2p_s-30, where pd and ps are, respectively the price paid by demanders and the price received by suppliers.

a: Draw the demand and supply functions.

b: Find the equilibrium quantity and price, and show them on the graph.

c: Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity.

The demand for butter is given by 120-4pd and the supply is 2ps-30, where på and på are, respectively
the price paid by demanders and the price received by suppliers.
a. Draw the demand and supply functions.
b.
Find the equilibrium quantity and price, and show them on the graph.
c.
Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains
the same. Draw the new supply function, and find the new equilibrium price and quantity.

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